Which of the following statements about a company's operating cycle is not true:

Multiple Choice

• The operating cycle is the time span from when cash is used to acquire goods and services until cash is received from the sale of goods and services.

• Most operating cycles are less than one year.

• Non-current items are those expected to come due within one year or the company's operating cycle.

• The length of a company's operating cycle depends on its activities.

• For a merchandiser selling products, the operating cycle is the time span between paying suppliers for merchandise and receiving cash from customers.

For the year ended December 31, a company had revenues of $187,000 and expenses of $109,000. $37,000 in dividends were paid during the year. Which of the following entries could not be a closing entry?

Multiple Choice

• Debit Income Summary $187,000; credit revenues $187,000.

• Debit Retained earnings $37,000; credit Dividends $37,000.

• Debit Income Summary $109,000, credit expenses $109,000.

• Debit Income Summary $78,000; credit Retained earnings $78,000.

• Debit revenues $187,000; credit Income Summary $187,000.