-Refer to the Information Above

question 138

Multiple Choice

-Refer to the information above.When the firm uses 9 employee-hours,it will collect total revenue of

• A) $240.
• B) $160.
• C) $80.
• D) $18.
• E) $2.

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Definitions:

Cash Cycle

The process that manages the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

Operating Cycle

The average time period between purchasing inventory and receiving cash from sales of the inventory.

Inventory Period

The average time an item remains in inventory before being sold, reflecting the turnover rate of a company's stock and efficiency in managing inventory.

Accounts Payable Period

The average number of days it takes for a company to pay off its suppliers and creditors.