Accounting Merchandising Operations

Question 1

intangibel assets

Answer 1

assets that do not have significant physical substance like Copyrights and patents

Question 2

Long-term investments

Answer 2

investments in ordinary shares and bonds of other companies or investments in non-current assets that a company is not using in its operating activities

Question 3

current assets

Answer 3

assets that a company expects to convert to cash or use up within one year or the operating cycle, whichever is longer.

Question 4

operating cycle

Answer 4

average time it takes from the purchase of inventory to the collection of cash from customers

Question 5

non-current liabilities

Answer 5

obligations a company expects to pay after one year

Question 6

current liabiites

Answer 6

obligations company is to pay within the coming year or its operating cycle, whichever is longer

Question 7

liquidity

Answer 7

ability to pay obligations expected to be due within the next year

Question 8

cost of goods sold

Answer 8

total cost of merchandise sold during the period