Firms with Short Operating Cycles Will Experience Less of a Lag

question 11

Multiple Choice

Firms with short operating cycles will experience less of a lag between the creation and delivery of their products and the collection of cash from customers because:

• A) their cash flow from operations will be much greater than their working capital from operations.
• B) their cash flow from operations will not differ much from their working capital from operations.
• C) their cash flow from operations will be much less than their working capital from operations.
• D) there will be no relation between their cash flow from operations and working capital from operations.

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Definitions:

Annual Distribution

The process or action of dividing and dispersing something, such as earnings or products, to designated recipients once per year.

Partnership Profits

The net earnings distributed among partners in a business partnership according to the agreed-upon terms.

Total Distribution

The total amount of income distributed to investors, including dividends and other payouts, from an investment over a specific period.

Certified General Accountant

A professional designation for accountants that signifies expertise in financial accounting and strategic management.