Under AASB 101,the 'average time between the acquisition of materials entering into a process and their realisation in cash or as an instrument that is readily convertible into cash' is known as:
A) production cycle
B) production line
C) economic cycle
D) operating cycle

Question

Quizplus · Accepted Answer

The term given in the question refers to the operating cycle, as defined under AASB 101. It represents the average time taken between acquiring the materials to their conversion into cash or cash equivalent. The production cycle refers to the time taken in converting raw materials to finished goods, while the production line is a physical arrangement of equipment used in the manufacturing process. The economic cycle refers to the overall performance and fluctuation in the economy over a period.

Under AASB 101,the 'Average Time Between the Acquisition of Materials