True or false? The cash collection cycle measures how quickly or slowly a business converts...
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Accounting
True or false? The cash collection cycle measures how quickly or slowly a business converts its product sales into cash
True or false? Having large levels of inventory on hand is an indication that a business is very efficient.
Working capital is the difference between:
Total assets and total liabilities
Current assets and current liabilities
Revenue and expenses
Capital expenditures and operating cash flow
If a business has cash of $42,000, total current assets of $75,000 and total current liabilities of $22,000, how much working capital is the business using?
The collection period measures _______.
Weekly collections
The time it takes the company to pay for the goods and services they purchase
The time it takes customers to pay for the goods and services they purchase
The number of days it takes for a business to convert its products into cash
Ending accounts receivable are $22,000. Daily revenue is $2,000. Calculate collection period.
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