Chapter 019 Short-Term Finance and Planning17-2 5. First United pays for an inventory item on day X. On day Y, First United receives payment from the customer who purchased that inventory item. The time period between day X and day Y is called the: a. operating cycle. b. inventory period. c. accounts receivable period. d. accounts payable period. e. cash cycle.
6. A graphical representation of the operating and cash cycles is called a(n):
7. Costs that increase as a firm acquires additional current assets are called _____ costs.
8. Costs that decrease as a firm acquires additional current assets are called _____ costs.
9. A forecast of cash receipts and disbursements for the next planning period is called a: a. pro forma income statement. b. statement of cash flows. c. cash budget. d. receivables analysis. e. credit analysis.