Corporate Finance Study Set 1

Which one of the following commences on the day inventory is purchased and ends on the day the payment for that inventory is collected? Assume all sales and purchases are on credit.

The amount of time that a firm holds inventory in stock is referred to as which one of the following?

The accounts receivable period is the time that elapses between the _____ and the _____.

Which one of the following is the length of time that a retailer owes its supplier for an inventory purchase?

Which one of the following defines the cash cycle?

Which one of the following is a graphical representation of the operating and cash cycles?

Which one of the following is directly related to increases in a firm's current assets?

Which of the following are inversely related to increases in a firm's current assets? I. re-order costs II) shortage costs III) restocking costs IV) carrying costs

Moore & Moore has just finished projecting its expected cash receipts and expenditures for next year. What is this projection called?

Which one of the following best describes a line of credit?

Accounts receivable financing is the term used to describe which of the following types of loans which involve either the assignment or the factoring of a firm's accounts receivables?

By definition, an inventory loan is which one of the following types of loan?

Which one of the following activities is a source of cash?

Which one of the following is a use of cash?

Which one of the following is a use of cash?

Which of the following are sources of cash? I. decreasing accounts receivable II) increasing inventory III) increasing accounts payable IV) increasing common stock

Which one of the following will increase the operating cycle?

Which one of the following will increase the operating cycle?

Which one of the following actions will decrease the operating cycle?

The operating cycle is equal to which one of the following?