Match the Term with Its Definition

question 50

Multiple Choice

Match the term with its definition.
-The management of current assets and current liabilities

• A)cash conversion period
• B)days in inventory
• C)days in payables
• D)days sales outstanding (average collection period)
• E)lock box
• F)working capital cycle
• G)working capital management

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Definitions:

Spending Variance

The difference between the actual amount spent and the budgeted amount for a particular period or item.

Actual Level

The real, measured level of production, performance, or activity, as opposed to planned or theoretical levels.

Spending Variance

The difference between the actual amount spent and the budgeted amount for a particular category or period, indicating over or under spending.

Planning Budget

A financial plan that estimates the revenue and expenses for a specific period, often used for setting performance expectations.