When Management Takes Deliberate Steps at a Balance Sheet Date

question 29

Short Answer

When management takes deliberate steps at a balance sheet date to produce a better current ratio than is normal it is called ______________________________.

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Definitions:

Collection Time

The average period it takes for a business to receive payments owed by its customers, reflecting on the efficiency of its credit policies and cash management.

T-bills Yield

The return on investment for Treasury bills, which are short-term government securities.

Disbursement Float

The time between when a payment is issued by a company and when the funds are actually withdrawn from the company's bank account.

Average Amount

The average amount is the sum of figures divided by the number of figures, used to find the central or typical value in a set of data.