Match the Following Terms with Their Correct Definition

question 53

Multiple Choice

Match the following terms with their correct definition.
-The elapsed time between the purchase of goods for resale and the collection of cash from customers

• A)Cash equivalents
• B)Cash over and short
• C)Operating cycle
• D)Petty cash

---

Definitions:

Warranty Obligations

Commitments made by a seller to repair, replace, or refund products that fail within a certain period.

Warranty Expense

Expenses a business faces for the repair or replacement of products covered by warranty.

Sales

The total revenue generated from selling goods or services over a specific period of time.

Defined Contribution Pension Plan

A type of retirement plan in which an employer, employee, or both make contributions on a regular basis, but the future benefit received by the employee depends on the plan's investment performance.