The Working Capital Cash Flow Cycle Encompasses Order and Receipt

question 161

True/False

The working capital cash flow cycle encompasses order and receipt of raw materials,conversion of raw material into inventory,and finally,conversion of inventory into sales and accounts receivable.

---

Definitions:

Continuing Operations

Parts of a business expected to continue operating and contributing to earnings over the long term, excluding any discontinued operations.

Discount Rate

The interest rate used to discount future cash flows of an investment to their present value, thereby assessing its attractiveness.

Financial Attribute

Characteristics or features of a financial nature that can be used to analyze or assess the financial position or performance of an entity.

Business Valuation

The process of determining the economic value of a business or company unit, based on analysis of the company's financial performance and market position.