Which of the following is true about the operating cycle concept? It causes the distinction between current and non-current items to depend on whether they will affect cash within one year. It permits some assets to be classified as current even though they are more than one year removed from becoming cash It affects the income statement but not the statement of cash flows The period covered is the time normally required to convert cash invested in tangible assets back into cash, or 12-months, whichever is longer.

Which of the following is true about the operating cycle concept? It causes the distinction between current and non-current items to depend on whether they will affect cash within one year. It permits some assets to be classified as current even though they are more than one year removed from becoming cash It affects the income statement but not the statement of cash flows The period covered is the time normally required to convert cash invested in tangible assets back into cash, or 12-months, whichever is longer.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter5: Inventories And Cost Of Goods Sold

Section: Chapter Questions

Problem 5.17E

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