The Transaction Cycle That Does Not Interface Directly with Cash

question 32

Multiple Choice

The transaction cycle that does not interface directly with cash is the:

• A) revenue cycle.
• B) expenditure cycle.
• C) production cycle.
• D) financing cycle.
• E) investing cycle.

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Definitions:

ROCE

Return on Capital Employed; a financial ratio that measures a company's profitability and the efficiency with which its capital is employed.

Operating Profit Margin

A profitability ratio calculated by dividing operating profit by total revenue, reflecting the percentage of revenue that is left over after paying for variable costs of production.

Asset Turnover

A financial ratio that measures the efficiency of a company's use of its assets to generate sales or revenue.

Return On Assets

A financial metric that indicates how profitable a company is relative to its total assets, measuring how efficiently a company uses its assets to generate earnings.