The trade
receivables collection period measures the average number of days
which elapse between acquiring an item of inventory and then selling
or using that item. ( )
receivables collection period measures the average number of days
which elapse between acquiring an item of inventory and then selling
or using that item. ( )
举一反三
- The<br/>opportunity cost of an item is() A: the number of hours needed to earn money to<br/>buy the item. B: what you give up to get that item.
- The<br/>length of time between the payment for inventory and the collection<br/>of cash from receivables is called the:() A: operating<br/>cycle. B: inventory<br/>period. C: accounts<br/>receivable period. D: accounts<br/>payable period. E: cash<br/>cycle.
- An analyst has gathered the following data about a company: Average receivables collection period of 95 days Average inventory processing period of 183 days A payables payment period of 274 days What is their cash conversion cycle A: 186 days. B: 552 days. C: 4 days.
- Which<br/>one of the following will not affect the operating cycle?() A: decreasing<br/>the payables turnover from 7 times to 6 times B: increasing<br/>the days sales in receivables C: decreasing<br/>the inventory turnover rate D: increasing<br/>the average receivables balance E: decreasing<br/>the credit repayment times for the firm’s customers
- ______ One of the questions the manager would ask when average collection period (days’ sales in receivables) is significantly higher than the industry norm is ___________________________.