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Match Each Term with the Correct Statement from Below

question 9

Multiple Choice

Match each term with the correct statement from below.
-A(n) ___________ is a responsibility centre in which a manager is responsible only for costs.


Definitions:

Temporary Working Capital

The additional working capital needed to support fluctuations in business activity during peak periods.

Short-Term Debt

Liabilities or loan obligations that are due to be paid within a year.

Average Collection Period

The average number of days it takes for a company to receive payments owed by its customers for goods or services sold on credit.

Credit Sales

Credit sales are transactions where the buyer is allowed to pay for goods or services at a later date, extending credit.

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