If a Company Is Looking to Shorten Their Cash-To-Cash Cycle

question 52

Multiple Choice

If a company is looking to shorten their cash-to-cash cycle, they can sell their accounts receivable and this is called

• A) recourse.
• B) factoring.
• C) writeoff. d recovery.

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Definitions:

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenue.

Common Stock

Shares that constitute ownership in a corporation, providing voting rights and entitling shareholders to a portion of the company’s profits through dividends.

Cash Dividend

A payment made by a company to its shareholders, usually in cash, out of its profits or reserves.

Bond Payable

A long-term debt instrument issued by corporations and governments, promising to pay the bondholder a specified sum of money at future dates.