Match the Terms with the Definitions

question 43

Multiple Choice

Match the terms with the definitions.
-The number of days in the year divided by the inventory turnover.

• A)selling expenses
• B)quick assets
• C)average days to sell inventory
• D)book value
• E)property, plant, and equipment
• F)operating cycle
• G)quick ratio
• H)general expenses
• I)gross profit
• J)net sales
• K)multiple-step income statement
• L)inventory turnover
• M)liquidity

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Definitions:

Cash Flows

The inflows and outflows of cash and cash equivalents for a business, reflecting its operational, investing, and financing activities.

Operating Activities

Activities directly related to the running of a business for profit, including production, sales, and day-to-day operations.

Direct Method

A cash flow forecasting technique that itemizes and records actual cash inflows and outflows, rather than using an indirect calculation.

Income Statement

A financial document showing a company's revenue, expenses, and profits over a specific period.