True or false? The cash collection cycle measures how quickly or slowly a business converts its product sales into cash

True or false? Having large levels of inventory on hand is an indication that a business is very efficient.

Working capital is the difference between:

Total assets and total liabilities

Current assets and current liabilities

Revenue and expenses

Capital expenditures and operating cash flow

If a business has cash of $42,000, total current assets of $75,000 and total current liabilities of $22,000, how much working capital is the business using?

The collection period measures _______.

Weekly collections

The time it takes the company to pay for the goods and services they purchase

The time it takes customers to pay for the goods and services they purchase

The number of days it takes for a business to convert its products into cash

Ending accounts receivable are $22,000. Daily revenue is $2,000. Calculate collection period.