Choose the Word or Phrase in [ ] Which Will

question 14

Short Answer

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-An adequate emergency fund should last [2-3 months | 6-9 months].

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Definitions:

Average Collection Period

The average time it takes for a business to collect payments owed by its customers.

Credit Obligations

Financial commitments, such as loans or credit card debt, that an individual or entity is legally required to repay.

Inventory Carrying Cost

The total cost of holding inventory, including storage, insurance, taxes, depreciation, and opportunity costs, among others.

Storage Cost

Expenses associated with storing goods or commodities before they are sold or further processed.