Which of the Following Would Not Be a Good Method

question 23

Multiple Choice

Which of the following would not be a good method of asset allocation?

• A) Restrict your portfolio to stocks
• B) Include bonds
• C) Include real estate
• D) Include mutual funds

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Definitions:

Accounts Receivable Period

Also known as the average collection period, it refers to the average number of days it takes a company to collect payments from its credit sales.

Collecting Receivables

Collecting receivables involves the process or steps taken by a business to ensure that payments are received from customers for goods or services provided on credit.

Cash Cycle

The period of time between a company's purchase of inventory and the receipt of cash from accounts receivable.

Operating Cycle

The duration of time from the purchase of inventory to the collection of cash from sales, reflecting the efficiency of a company's operations.