Chapter 2

Question 1

Operatoing cycles

Answer 1

average period of time it takes for a business to pay cash to obtain products or services and then recieve cash from consumers for these products.

Question 2

Trading investments

Answer 2

in debt securities

Question 3

Acc recievable

Answer 3

Aret owed to the company by services who puchased products or service on credit.

Question 4

Notes recievable

Answer 4

Amounts owed to the company by customers or others that are supported by a written promise to repay.

Question 5

Merchandise inventory

Answer 5

refers to goods held for sale to customers

Question 6

Prepaid expenes

Answer 6

the cost of expences like rent & insurence paid in advance of use. Current asset because they reflect unused benifits such as office space and insurence coverage avalible for future use within the year.

Question 7

Non-current assets

Answer 7

are not expected to be converted into cash sold or used up by the business within the year .

Question 8

Accumulated depreciation

Answer 8

shows the amount of depreciation taken so for over the life of the asset.

Question 9

carrying amount

Answer 9

the difference between cost accumalated depreciation