If an Event Is Certain Not to Occur, Its Probability

question 49

True/False

If an event is certain not to occur, its probability of occurrence equals 0.00.

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Definitions:

Accounts Receivable Period

The accounts receivable period is the average number of days it takes a company to collect payments owed by its customers.

Operating Cycle

The period of time between the acquisition of goods for production and the cash received from their sale.

Cash Cycle

The period between the outlay of cash for the purchase of inventory and the receipt of cash from accounts receivable, representing the time it takes for a company to turn its investments in inventory back into cash.

Receivables Factoring

The process of selling a business's accounts receivable to a third party at a discount to quickly generate cash.