Term
| Operating (Cash-to-Cash) Cycle |
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Definition
| The time it takes for a company to pay cash to suppliers, sell goods and services to customers, and collect cash from customers. |
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Term
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Definition
| Indicates that the long life of a company can be reported in shorter time periods. |
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Term
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Definition
| Increases in assets or settlements of liabilities from ongoing operations. |
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Term
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Definition
| Decreases in assets or increases in liabilities from ongoing operations incurred to generate revenues during the period. |
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Term
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Definition
| Increases in assets or decreases in liabilities from peripheral transactions. |
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Term
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Definition
| Decreases in assets or increases in liabilities from peripheral transactions. |
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Term
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Definition
| Records revenues when cash is received and expenses when cash is paid. |
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Term
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Definition
| Records revenues when earned and expenses when incurred, regardless of the timing of cash receipts or payments. |
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Term
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Definition
| States that revenues are recognized when goods or services are delivered, there is persuasive evidence of an arrangement for customer payment, the price is fixed or determinable, and collection is reasonably assured. |
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Term
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Definition
| Requires that expenses be recorded when incurred in earning revenue. |
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