Chapter 16

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

Carrying Costs

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

Cash flow time line

Which of these is a use of cash?

Decreasing accounts payable

Which of these activities is a source of cash?

Decreasing accounts receivable

Which one of the following will increase the operating cycle?

Decreasing the accounts receivable turnover rate

Which one of these will increase the operating cycle?

Decreasing the inventory turnover rate

The amount of time a firm holds inventory in stock is referred to as the:

Inventory Period

Which one of the following is a use of cash?

Paying a supplier for inventory you purchased last month

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

Secured short-term loan

The length of time a retailer owes its supplier for an inventory purchase is called the:

accounts payable period

The operating cycle is equal to the:

accounts receivable period plus the inventory period.

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

cash Budget

The operating cycle:

describes how a product moves through the current asset accounts.

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

sale of inventory; collection of the receivabl