The ________ of a Firm Is the Amount of Time

question 264

Multiple Choice

The ________ of a firm is the amount of time that elapses from the point when the firm inputs material and labor into the production process to the point when cash is collected from the sale of the finished product that contains these production inputs.

• A) cash conversion cycle
• B) average age of inventory
• C) operating cycle
• D) average collection period

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Definitions:

Leap Year

A year consisting of 366 days, with an extra day added to February, occurring every four years to help synchronize the calendar year with the solar year.

Accounts Payable

A liability account tracking amounts owed by a company to suppliers or creditors for goods and services received.

Time Extension

The act of prolonging a period or deadline, allowing more time for completion of a task or obligation.