Select the correct term for each of the following descriptions.

Descriptions	Terms
The amount of current assets financed with long-term liabilities; calculated as the difference between a firms current assets and its current liabilities.
The average length of time required to convert raw materials into finished goods and then sell those goods.
The amount of time, usually measured in days, in which an account payable remains unpaid.
Its value is calculated by dividing a firms account receivable balance by its average daily credit sales.
Also called the maturity matching approach, this current asset financing strategy matches the maturity of a firms current assets, and their conversion into cash, with the maturity of the current liabilities used to finance them, and their repayment with cash.
A financing policy in which all of a firms fixed and permanent current assets are financed with its long-term debt and equity capital and its spontaneous sources of short-term capital.
The general term used to collectively describe the firms current asset investment, including its cash, marketable securities, accounts receivable, and inventory.
Current asset balances maintained by a firm that are independent of seasonal or cyclical economic conditions.

Grade It Now

Save & Continue