The ________ Is the Time Span During Which Cash Is

question 45

Multiple Choice

The ________ is the time span during which cash is paid for goods and services,which are then sold to customers from whom the business collects cash.

• A) operating cycle
• B) accounting period
• C) calendar year
• D) calendar quarter

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Definitions:

Net Investment

The difference between total investments and the depreciation on those investments over a period, representing the increase in value of an asset.

Marginal Tax Rate

The percentage of tax applied to your income for each tax bracket in which you qualify.

Salvage Value

The estimated resale value of an asset at the end of its useful life, considered in depreciation calculations and asset disposal decisions.

Annual Net Cash Flows

The total amount of cash that a company generates or loses over one year, after all expenses and incomes are taken into account.