The Period of Time That Begins When Money Is Spent

question 80

Multiple Choice

The period of time that begins when money is spent on raw materials and does not end until money is collected on the sale of a finished good is known as which of the following?

• A) Cash-to-cash cycle
• B) Cash budgets
• C) Sales-to-cash cycle
• D) Accounts receivable-to-cash cycle

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Definitions:

Freight Costs

Expenses associated with transporting goods from one location to another, including charges for shipping, handling, and insurance.

FOB Shipping Point

A delivery term indicating that the buyer takes ownership and risk for the goods once they are shipped, with FOB meaning "Free On Board".

Freight Costs

The expenses associated with transporting goods from one location to another.

FOB Destination

A shipping term indicating that the seller bears freight charges and owns the goods until they are delivered to the buyer’s location.