The Period of Time That Extends from the Day a Credit

question 83

Multiple Choice

The period of time that extends from the day a credit sale is made until the day the bank credits a firm's account with the payment for that sale is known as the _____ period.

• A)float
• B)cash collection
• C)sales
• D)accounts receivable
• E)discount

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Definitions:

NPV

Net Present Value (NPV) is a financial metric that calculates the present value of all cash flows, both incoming and outgoing, associated with a project or investment.

Cash Flow

The total amount of money being transferred into and out of a business, affecting its liquidity, solvency, and operational capabilities.

IRR

Internal Rate of Return, a financial metric used to estimate the profitability of potential investments.

Cash Flow

The total amount of money being transferred in and out of a business, particularly in handling its operational activities and investments.