ARBUS102 Chapter Notes - Chapter 3: Accrual, Income Statement, Net Income
24 Feb 2016
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Chapter 3 reporting operating results on the income statement. Operating activates are the day-to-day functions involved in running a business. Occur regularly and often have a shorter duration of effect. Include buying goods and services from suppliers and employees and selling goods and services to customers and then collecting cash from them. Operating cycle, the period from buying goods and services through to collecting cash from customers. Typical operating cycle activates: buy goods and services the bsuiess receives of pizza. the business gives a promise to pay . 2. Pay cash to suppliers the business receives release from promise. the business gives cash. 3. Sell goods and services the business receives right to collect . the business gives pizzas at a price of . 4. Collect cash from customers the bsuiness receives cash. The business gives up right to collect . The length of time for each step varies from company.
