Question

which of the following liabilities is not relates in operationg cycles​

Answer 1

Answer:

An Operating Cycle (OC) refers to the days required for a business to receive inventoryInventoryInventory is a current asset account found on the balance sheet, consisting of all raw materials, work-in-progress, and finished goods that a, sell the inventory, and collect cash from the sale of the inventory.

Answer 2

Ques: Which of the following liabilities are not related to the operating cycle?

A) Salaries and wages payable

B) Accounts payable

C) Utilities payable

D) Bonds payable

Answer:

The correct answer is option D) Bonds payable.

Explanation:

The days needed for a business to receive inventory, sell the goods, and collect money from the sale of the inventory are referred to as an operating cycle (OC). This cycle is crucial in evaluating how effectively a business operates.

Bonds that will mature within a year of the date of the balance sheet will only be represented as a current liability if the bond issuer will need to use a current asset or establish a current liability in order to pay the bondholders when the bonds mature.

Accounts payable (amounts owed to suppliers that have issued invoices to the business), accumulated expenses, and other liabilities related to ongoing business operations.

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