Deduction Concepts and Constructs Include Which of the Following

question 129

Multiple Choice

Deduction concepts and constructs include which of the following?
I.Legislative Grace Concept.
II.Business Purpose Concept.
​

• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

---

Definitions:

Inventory Period

The duration of time goods remain in inventory before being sold.

Accounts Receivable Period

The accounts receivable period is the average time it takes for a business to receive payments owed by its customers for goods or services sold on credit.

Cash Cycle

This term describes the time it takes for a business to convert its investments in inventory and other resources into cash flows from sales.

Source Of Cash

The origin of funds that a company or individual has, which could be operational earnings, investment returns, or financing.