Question
What is the operating cycle of the following company given the following? Stock cycle 12 days Trade debtors cycle 18 days Trade creditors cycle 20
What is the operating cycle of the following company given the following?
Stock cycle12 days
Trade debtors cycle18 days
Trade creditors cycle20 days
(A)26 days
(B)14 days
(C)50 days
(D)10 days
5.Which factors determine the terms of trade credit offered to customers?
(A)Relative bargaining strength of customer and supplier
(B)The type of product being bought and sold
(C)Tradition of the industry
(D)All of the above
6.NANDINO Oman LLC uses 3,000 units of steel component per year. The company has calculated that the cost of placing and processing an order for the steel component is OMR 25, and the cost of holding one unit of steel component for a year is OMR 8.
_______is the economic order quantity (EOQ) for steel component.
(A)115 units
(B)137 units
(C)18,856 units
(D)111 units
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Loose Leaf Fundamental Financial Accounting Concepts
Authors: Thomas Edmonds, Frances McNair, Philip Olds
8th Edition
0077433807, 978-0077433802
