________ Can Benefit a Seller by Decreasing the Delay in Receiving

question 156

Short Answer

________ can benefit a seller by decreasing the delay in receiving cash and reducing future collection efforts.

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Definitions:

Free Cash Flow

The amount of cash generated by a business after accounting for capital expenditures needed to maintain or expand the asset base.

Common Stock

A type of security that represents ownership in a corporation, entitling the shareholder to a proportion of the corporation's assets and profits.

Depreciation

The systematic allocation of the cost of an asset over its useful life.

Net Income

The total revenue of a company minus its expenses, taxes, and the cost of goods sold, indicating the company's profit.