Ideally,the Average Payable Period Should Match or Exceed the Time

question 111

True/False

Ideally,the average payable period should match or exceed the time it takes to convert inventory into sales and sales into cash.

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Definitions:

Treasury Bills

Short-term government securities issued at a discount from the face value and mature in a year or less, used to raise funds and manage the national debt.

Corporate Stock

Share in a corporation. The stockholders own the corporation.

Depository Institutions

Financial institutions that accept deposits from the public, including banks, savings and loan associations, and credit unions, providing various banking and lending services.

Deposits

Funds placed into banking institutions for safekeeping, which can include savings accounts, checking accounts, and certificates of deposit.