The General Term Employed to Indicate an Expense That Has

question 70

Multiple Choice

The general term employed to indicate an expense that has not been paid or revenue that has not been received and has not yet been recognized in the accounts is a(n)

• A)contra asset.
• B)prepayment.
• C)asset.
• D)accrual.

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Definitions:

Cash Conversion Cycle

A measurement that gauges the duration required for a business to transform its investments in stock and other assets into cash flows from customer purchases.

Receivables Collection

The process of a business collecting payments owed by its customers for goods or services provided.

Inventory Payment

The process of paying for goods that a company has in stock, which is a critical part of managing a business's cash flow.

Working Capital Investment

Funds invested in the short-term assets of a company, such as inventory and receivables, to support its day-to-day operations.