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The time from the receipt of raw materials to the collection of the cash of the sale of the finished good is called a firm’s operating cycle cash conversion cycle inventory period accounts

The time from the receipt of raw materials to the collection of the cash of the sale of the finished good is called a firm’s

a.operating cycle

b.cash conversion cycle

c.inventory period

d.accounts receivables period

 

 

 

2.What can a company do to shorten its cash conversion cycle?

a.turn inventory over as quickly as possible

b.collect accounts receivables as quickly as possible

c.pay accounts as slowly as possible

d.all of the above

 

 

 

3.The inventory control system technique that segregates inventory into three groups is called the

a.economic order quantity model

b.ABC system

c.material requirements planning system

d.just-in-time system

 

 

 

4.Which of the following is not one of the five Cs of credit?

a.character

b.capacity

c.capital

d.credit scoring

 

 

 

5.The terms of sale for customers are called the

a.credit terms

b.collection policy

c.cash discounts

d.none of the above

 

 

 

6.Bavarian Brew has an average age of inventory of 35 days, an average collection period of 27 days. What is the company’s operating cycle?

a.35 days

b.27 days

c.62 days

d.8 days

 

 

 

7.Bavarian Brew has an average age of inventory of 35 days, an average collection period of 27 days, and an average payment period of 16 days. What is the company’s cash conversion cycle?

a.62 days

b.46 days

c.51 days

d.43 days

 

 

 

8.Bavarian Brew has an average age of inventory of 35 days, an average collection period of 27 days and a cash conversion cycle of 16 days. What is the company’s average payment period?

a.46 days

b.62 days

c.16 days

d.19 days

 

 

 

 

9.Bavarian Brew has an average payment period of 35 days, an average collection period of 27 days and a cash conversion cycle of 16 days. What is the company’s average age of inventory?

a.51 days

b.43 days

c.24 days

d.16 days

 

 

 

 

10.Bavarian Brew has an average payment period of 35 days, an average age of inventory of 27 days and a cash conversion cycle of 16 days. What is the company’s average collection period?

a.24 days

b.51 days

c.16 days

d.38 days

Feb 13 2020 View more View Less

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