IAS 1 Working Capital Cycle Flashcards
1
Q
What does the working capital cycle include?
A
Cash
Receivables
Inventories
Payables
2
Q
Working capital cycle meaning?
A
Time to purchase inventories, sell them and collect cash
3
Q
What is inventoy holding period used for?
A
Period before selling inventory after purchasing it
4
Q
What is receivables collection period used for?
A
Selling inventories for receiving cash from receivables
5
Q
What is working capital cycle used for?
A
Cash received from receivables to pay payables
6
Q
What is payables payment period used for?
A
Purchasing inventories to pay payables
