Match the Term with Its Definition

question 79

Multiple Choice

Match the term with its definition.
-The number of days, on average, that a company holds inventory

• 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:

Total Assets

The total of a company's assets, encompassing both short-term and long-term assets.

Direct Method

In cash flow statement preparation, this approach lists the major categories of gross cash receipts and payments, offering more detail compared to the indirect method.

Operating Activities

Activities that relate to the primary operations of a company, including production, sales, and delivery of its products or services.

Income Statement

A document detailing a corporation's financial results for a given fiscal period, including income, costs, and net profit.