The Cash Cycle Is Represented by the Following Sequence

question 43

Multiple Choice

The cash cycle is represented by the following sequence:

• A) Cash, raw materials, finished goods, and receivables, cash
• B) Cash, receivables, finished goods, and raw materials, cash
• C) Cash, raw material, receivables, finished goods, cash
• D) None of the above

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Definitions:

Purchasing Externally

The process of acquiring goods, services, or works from an outside external source, often through a tendering or competitive bidding process.

Third-Party Logistics

External companies hired to manage all or part of another company’s logistics functions, including transportation, warehousing, and distribution.

Outsourcing

The practice of hiring third parties to perform services or produce goods traditionally performed or made in-house, to reduce costs or improve efficiency.

Logistics

The process of planning, implementing, and controlling the efficient flow and storage of goods, services, and related information from point of origin to point of consumption.