Match These Terms to Their Correct Definition

question 194

Multiple Choice

Match these terms to their correct definition.
-Sum of the dividend payout and stock repurchase payout ratios.

• A)Accounts receivable turnover ratio
• B)Cash ratio
• C)Gross profit percentage
• D)Inventory turnover ratio
• E)Net profit margin percentage
• F)Operating margin percentage
• G)Quick ratio
• H)Total payout ratio

---

Definitions:

Commercial Paper

An unsecured, short-term debt instrument issued by corporations, typically used for the financing of payroll, accounts payable and inventories, and meeting other short-term liabilities.

Trade Credit

A type of commercial financing where a customer is allowed to purchase goods or services and pay the supplier at a later scheduled date.

Operating Plan

A detailed document outlining the day-to-day operations required to run a business, including production, staffing, and inventory management processes.

Financial Planning

The process of estimating the capital required and determining its competition; it is the process of framing financial policies in relation to procurement, investment, and administration of funds of an enterprise.