Which of the Following Are Major Influences on the Expected

question 199

Multiple Choice

Which of the following are major influences on the expected profit from an investment?
I. technology advances
II. stock market behavior
III. accounting practices

• A) I and II
• B) II and III
• C) I only
• D) I and III

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Definitions:

Short-Term Debt

A financial obligation that is due to be repaid within a year or less.

Cash Cycle

The cash cycle, also known as the cash conversion cycle, measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

Operating Cycle

The period it takes for a business to acquire resources, produce inventory, sell it in the market, and eventually collect cash from the sale.

Accounts Payable Period

The average amount of time it takes for a business to pay off its suppliers and creditors for purchases made on credit.