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Commerce · Q610

Business Finance

Graduate and Post Graduate · Commerce · question 610

Q610

Arrange the following in chronological order about the events of operating cycle. 1. Conversion of accounts receivable into cash. 2. Conversion of finished goods into accounts receivable. 3. Conversion of raw materials into work-in-process. 4. Conversion of work-in-process into finished goods.

A.
3, 4, 2, 1
Answer
B.
3, 1, 4, 2
C.
4, 3, 2, 1
D.
1, 3, 2, 4

Answer: Option A

Solution

Answer: Option A
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