Cash Conversion Cycle (CCC) is a measure of the length of time (in days) it takes a company to convert its investment in inventory and other resources into sales cash flows.
This metric takes into account the time it takes to sell its inventory, the time it takes to collect receivables, and the time a company is allowed to pay its bills without any penalties.
The CCC will vary by industry depending on the nature of the business.
Accrual accounting is a method of accounting in which revenue or expenses are recorded at the time of the transaction, and not at the time the payment is received or made.
Performance Based Management (ABM) is a means of analyzing a company’s profitability by looking at every aspect of its business to determine its strengths and weaknesses.
Adjusting journal entries are used to record transactions that have occurred but have not yet been properly accounted for in accordance with the accrual basis.
The annual report is a corporate document distributed to shareholders, which sets out the financial position and activities of the company for the previous year.
An asset is a resource with economic value that is owned or managed by an individual, corporation or country with the expectation that it will provide benefits in the future.