Which of the Following Is the Best Definition of Cash

question 322

Multiple Choice

Which of the following is the best definition of cash flow time line?

• A) The time between cash disbursement and cash collection.
• B) Graphical representation of the operating cycle and the cash cycle.
• C) A promise by the firm, included in the debt contract, to perform certain acts. A restrictive covenant imposes constraints on the firm to protect the interests of the debtholder.
• D) A secured short-term loan to purchase inventory.
• E) The time it takes to acquire and sell inventory.

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Definitions:

Perfectly Inelastic

A situation where demand does not change at all in response to changes in price.

Quantity Supplied

The total amount of a good or service that producers are willing and able to sell at a certain price over a specified period.

Price Effect

The impact on consumer demand and company revenue as the cost of a good or service changes.

Quantity Effect

The impact on total revenue that results from changing the quantity of goods or services sold, holding all else constant.