Which of the Following Is an Example of an "Operating

question 19

Multiple Choice

Which of the following is an example of an "operating" cash cycle?

• A)Receipt of funding from investors that is used to generate returns from investments and operations, and then returned to investors.
• B)Purchase of property with long-term future benefits which results in cash inflows and then the property is disposed of.
• C)Planning for product growth which results in investment opportunities that will create returns for investors.
• D)Purchase of inventory, conversion into products that are delivered to customers, and receipts from customers.

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Definitions:

GIC's Maturity

The fixed date when a Guaranteed Investment Certificate (GIC) expires and the principal amount is returned to the investor along with the accrued earnings.

Invested

The act of allocating resources, usually money, to generate an income or profit.

Compounded Monthly

The process where interest is calculated and added to the principal sum of an investment or loan on a monthly basis.

Contributions

Payments or services provided by individuals or organizations towards a common goal or benefit.