What Is a Financing Cash Cycle

question 78

Multiple Choice

What is a financing cash cycle?

• A)A cycle of transactions that converts cash inflows to cash outflows, or vice versa.
• B)A cycle where there is receipt of funding from investors, those funds are used to generate returns from investments and operations, and then the funds are returned to investors.
• C)A cycle where a property is purchased that has long-term future benefits for the enterprise, which ultimately results in cash inflows, and then the property is disposed of.
• D)A cycle that involves the purchase of items such as inventory; production, sales, delivery of goods or provision of services; and receipts from customers.

---

Definitions:

Incentive Program

A structured plan designed to motivate and reward employees for meeting specific performance targets or objectives.

Equity

The principle of fairness and impartiality within the workplace, often relating to compensation, opportunity, and treatment of employees.

Relative Deprivation

Relative deprivation refers to the experience of feeling deprived of something to which one believes they are entitled, often in comparison to others.

Psychological Contract

An unwritten agreement that reflects the mutual beliefs, perceptions, and informal obligations between an employer and employee.