Examples of operating cycle in the following topics:
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- The accrual method ensures proper reporting on the income statement because the operating cycle doesn't coincide with the accounting cycle.
- Often, companies have a separate operating cycle for their business.
- It is very rare that the accounting cycle and operating cycle coincide with each other.
- That is why each business transaction during the operating cycle is analyzed to determine which accounting cycle to record it in.
- When companies fail to follow this procedure, the current accounting cycle records do not accurately reflect the business transactions in each of the operating cycles.
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- Cash flow cycle = # days between disbursing cash and collecting cash in connection with undertaking a discrete unit of operations.
- The cash flow cycle is also called cash conversion cycle (CCC).
- CCC=# days between disbursing cash and collecting cash in connection with undertaking a discrete unit of operations.
- The operating cycle emerges as interval A→D (i.e., owing cash→collecting cash)
- Knowledge of any three of these conversion cycles permits derivation of the fourth (leaving aside the operating cycle, which is just the sum of the inventory conversion period and the receivables conversion period. )
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- The most widely used measure of cash flow is the net operating cycle or cash conversion cycle.
- Because this number effectively corresponds to the time that the firm's cash is tied up in operations and unavailable for other activities, management generally aims at shortening the cash conversion cycle as much as possible.
- However, shortening the cycle creates its own risks.
- The aim of the study and calculation of the cash conversion cycle is to change the policies relating to credit purchase and credit sales.
- A firm can change its standards for payment on credit purchases and getting payment from debtors on the basis of cash conversion cycle.
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- The cash flow cycle measures how long it takes for a firm to recover cash that it invests in ongoing operations.
- Cash flow cycle also is called "cash conversion cycle" (CCC).
- The cash conversion cycle refers to the time frame between a firm's cash disbursement and cash collection.
- Although the term "cash conversion cycle" technically applies to a firm in any industry, the equation is formulated to apply specifically to a retailer.
- Since a retailer's operations consist of buying and selling inventory, the equation models the time between the following:
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- The Carnot cycle is the most efficient cyclical process possible and uses only reversible processes through its cycle.
- He devised a theoretical cycle, now called the Carnot cycle, which is the most efficient cyclical process possible.
- Any heat engine employing the Carnot cycle is called a Carnot engine.
- The second law of thermodynamics (a third form): A Carnot engine operating between two given temperatures has the greatest possible efficiency of any heat engine operating between these two temperatures.
- Also shown is a schematic of a Carnot engine operating between hot and cold reservoirs at temperatures Th and Tc.
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- This stage should determine the scope of the operation.
- Monitoring and controlling: This can be thought of as the perfecting stage, in which analyzing the efficiency and quality of the project cycle from a strategic perspective allows for the optimization of operational processes.
- Monitoring the operation for ways to increase value can redirect the strategic-planning cycle back to the planning-and-design stage.
- Therefore, the project cycle is closed.
- This allows for informed and knowledgeable decisions to be made at each relevant point in the operation.
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- Microbes form the backbone of every ecological system by controlling global biogeochemical cycling of elements essential for life.
- Nutrients move through the ecosystem in biogeochemical cycles.
- Ecosystems have many biogeochemical cycles operating as a part of the system.
- A good example of a molecule that is cycled within an ecosystem is water, which is always recycled through the water cycle.
- This typifies the cycling that is observed for all of the principal elements of life .
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- To prevent a compromised cell from continuing to divide, internal control mechanisms operate at three main cell cycle checkpoints.
- A checkpoint is one of several points in the eukaryotic cell cycle at which the progression of a cell to the next stage in the cycle can be halted until conditions are favorable (e.g. the DNA is repaired).
- Cyclins are cell-signaling molecules that regulate the cell cycle.
- The cell cycle is controlled at three checkpoints.
- Explain the effects of internal checkpoints on the regulation of the cell cycle
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- The life cycle of an organization is important to consider when determining its overall design and structure.
- Daft theorized four stages of the organizational life cycle, each with critical transitions:
- The Enterprise Life Cycle comes strongly into play in the elaboration stage.
- Such structures allow small teams to experiment and react quickly as they try new entrepreneurial strategies while the larger organization maintains operative efficiency in established markets.
- Describe the way in which life cycles influence an organization's overall design and structure
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- Cash payments describe cash flowing out of a business resulting from operating activities, investment activities and financing activities.
- These cash payments can result from operating activities, investment activities and financing activities.
- The cash disbursement cycle is important to consider when analyzing cash payments.
- A company's objective regarding the cash disbursement cycle should be to increase the cycle time, or delay making payments until they are due.
- This will increase the mail time, or mail float, within the disbursement cycle.