The Period of Time During Which Either Liquidity Reserves or External

question 186

Multiple Choice

The period of time during which either liquidity reserves or external funding is needed to maintain company operations is called the:

• A) Accounts payable period.
• B) Operating cycle.
• C) Cash cycle.
• D) Accounts receivable period.
• E) Inventory period.

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Definitions:

Profit Center Managers

Individuals responsible for overseeing a unit or department within an organization that directly contributes to its profit.

Revenues

Income generated from normal business operations and includes discounts and deductions for returned merchandise.

Costs

The amount of money or resources expended in order to obtain something or achieve a goal.

Indirect Expenses

Costs that are not directly linked to the production of goods or services, such as administrative and marketing expenses.