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Which accrued liabilities

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Problem 1: New Oaks Winery requires two months to make wine, two years to age it, one month to bottle it, two months to sell it, and one month to collect the receivable. Its operating cycle is

a. 12 months.

b. 30 months.

c. 6 months.

d. 3 months.

Problem 2: Accrued liabilities

a. are generally paid in services rather than cash.

b. result from payment before services are received.

c. result from services received before payment is made.

d. are deferred charges to expense.

Reference no: EM133011442

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