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	Accounting
	Chapter 3 1. Financial transactions that occur continuously during an accounting time period are part of a sequence of activities. This cash-to-cash sequence of events is commonly referred to as an operating cycle. 1. Cash on hand. 2. Something is purchased. 3. Expenses are paid. 4. Cash payment to suppliers. 2. No, operating cycles overlaps. 3. Accrual accounting matches expenses to revenues of a particular time period. These expenses are matched to the revenues generated by these expenses and are involved in the income statement of the same period. 4. 5. The cost of goods (either items sold or services provided) transferred to customers can be easily aligned as expenses incurred in the same period that revenue is generated. Approximate Word count = 394 Approximate Pages = 1.6 (250 words per page double spaced)

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