Define each of the following terms:a. Working capital; net working capital; net operating working capitalb. Relaxed investment policy; restricted investment policy; moderate investment policyc. Permanent current assets; temporary current assetsd. Current assets financing policy; maturity matching (self-liquidating) approache. Cash conversion cycle (CCC); inventory conversion period; average collection period;payables deferral periodf. Cash budget; target cash balanceg. Lockbox; account receivableh. Credit policy; credit period; discounts; credit standards; collection policy; credit terms;credit scorei. Trade credit; free trade credit; costly trade creditj. Promissory note; line of credit; revolving credit agreementk. Prime rate; regular, or simple interest; add-on interestl. Commercial paper; accruals; spontaneous fundsm. Secured loan

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A: Asset:   It refers to the resources owned by the business in both tangible and intangible forms.

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A: Enterprise value : total value of the company that shows how much will it cost to buy the firm.

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A: IAS 7 - Statement of Cash flows are the part of financial statement which shows the net…

Q: Define the net operating cash flow.

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A: Decisions based on certain things

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A:

Q: Calculate Quick Ratio Operating cash flow to current liabilities Working capital

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A: Working capital management helps to ensure smooth operations of the business.

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A: cash, receivable and inventory should be financed with long-term debt or equity

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Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.