Margaret Has Just Sold Merchandise to a Small Beauty Salon

question 93

Multiple Choice

Margaret has just sold merchandise to a small beauty salon and has given the salon 45 days to pay the invoice.She is at the beginning of:

• A)the life cycle of receivables.
• B)the cash conversion cycle.
• C)the working capital management cycle.
• D)the inventory management cycle.

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Definitions:

Assets

Economic resources or valuable items owned by an individual or business, capable of being converted into cash or used to generate income.

Credit Cards

Financial tools issued by banks that allow users to borrow funds within a pre-approved limit for purchases or cash advances, with the expectation of repayment with interest.

Debit Cards

A payment card that deducts money directly from a consumer’s checking account to pay for a purchase.

Large Denomination

Refers to currency notes or bonds that are issued in high face values, often preferred by investors seeking to transfer or store large amounts of value.