What Is a Financing Cash Cycle

question 78

Multiple Choice

What is a financing cash cycle?

• A)A cycle of transactions that converts cash inflows to cash outflows, or vice versa.
• B)A cycle where there is receipt of funding from investors, those funds are used to generate returns from investments and operations, and then the funds are returned to investors.
• C)A cycle where a property is purchased that has long-term future benefits for the enterprise, which ultimately results in cash inflows, and then the property is disposed of.
• D)A cycle that involves the purchase of items such as inventory; production, sales, delivery of goods or provision of services; and receipts from customers.

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Definitions:

Successive Peaks

Repeated achieving of higher levels or values in a given sequence, often used in the context of economic growth, stock market performance, or other measurements of success.

Contraction

A phase of the business cycle where there is a decline in national output and economic activity.

Standard Of Living

The degree of wealth and material comfort available to a person or community, measured through income, employment, class disparity, poverty rate, and housing affordability.

Real GDP

The total value of all goods and services produced within a country, adjusted for inflation, reflecting the real quantity of goods and services.