Which of the Following Is a Component of a Firm's

question 92

Multiple Choice

Which of the following is a component of a firm's gross working capital?

• A)Cash
• B)Accounts payable
• C)Fixed assets
• D)a and b
• E)All of the above

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Definitions:

Cost Of Credit

The total amount of interest and other charges a borrower pays over the life of a loan, expressed as a rate of the principal sum borrowed.

Credit Terms

Credit terms are the conditions under which a seller extends credit to a buyer, detailing the repayment period, interest rate, and the consequences of late payment.

Management Of Payments

The process of overseeing and conducting all transactions related to payments, including the timing and amounts of money going in and out of a business.

Invoice

A document issued by a seller to a buyer, detailing products or services provided, their prices, and the total amount due for payment.