Which of the Following Best Defines the Order-To-Cash Cycle

question 90

Multiple Choice

Which of the following best defines the order-to-cash cycle?

• A) It is the time gap between purchase of raw materials and manufacturing of the final product.
• B) It is the amount of time between order placement and receipt of the customer's payment following order shipment.
• C) It is the time delay between the packaging of an order and the consumption of the product.
• D) It is the amount of time between the cancellation of an order and the approval of cancellation.

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Definitions:

Negative Residual Value

Negative residual value implies that the value of an asset at the end of its useful life is expected to be less than zero, indicating costs associated with disposal or removal.

Environmentally Sound

Practices or operations that have a minimal negative impact on the environment, promoting sustainability.

Lease Rate

The cost of leasing or renting a particular asset, property, or equipment, usually expressed as a payment amount per time period.

Sale And Leaseback

A transaction where a company sells an asset and leases it back from the buyer, providing liquidity while retaining the asset's use.