All of the Following Statements About the Cash-To-Cash Cycle Are

question 61

Multiple Choice

All of the following statements about the cash-to-cash cycle are true except:

• A)It includes normal day to day operating activities, investing activities, and financing activities.
• B)It includes normal buying \ selling of goods to earn profit.
• C)Typical business operations involve an outflow of cash followed by an inflow of cash
• D)Specific activities include purchasing inventory and selling product.

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Definitions:

Selling Expenses

Costs incurred directly and indirectly in selling a product, including advertising, shipping, and sales staff salaries.

Merchandise

Goods that have been purchased for resale, typically in a retail environment.

Sales to Total Assets Ratio

A financial metric that measures how efficiently a company is using its assets to generate sales.

Total Assets

The total value of everything a company owns, both current and non-current, as recorded on the balance sheet.