The Time from the Receipt of Raw Materials to the Collection

question 68

Multiple Choice

The time from the receipt of raw materials to the collection of the cash of the sale of the finished good is called a firm's

• A) operating cycle
• B) cash conversion cycle
• C) inventory period
• D) accounts receivables period

---

Definitions:

Retained Earnings

The portion of a company's profits that is kept or retained rather than distributed to shareholders or used to pay dividends.

Net Income

The total earnings of a company after subtracting all expenses, including taxes and operating costs.

Dividend

A part of a company's profits paid out to its shareholders, often as cash or extra shares.

Treasury Stock

Shares that were issued and subsequently reacquired by the issuing corporation, reducing the amount of outstanding stock on the market.