Match List-I and List-II.

Choose the correct answer from the options given below :

(A)-(IV), (B)-(III), (C)-(I), (D)-(II)

The correct answer is option (2) : (A)-(IV), (B)-(III), (C)-(I), (D)-(II)

The correct matching of List I with List II is as follows :

(A) Production cycle - Production cycle is the time span between the receipt of raw material and their conversion into finished goods.

(B) Credit allowed :- Different firms allow different credit terms to their customers. These depend upon the level of competition that a firm faces as well as the credit worthiness of their clientele

(C) Operating efficiency :- Firms manage their operations with varied degrees of efficiency. For example a firm managing its raw materials efficiently may be able to manage with a smaller balance. This is reflected in a higher inventory turnover ratio.

(D) Credit availed - Just as a firm allows credit to its customers it also may get credit from its suppliers. To the extent it avails the credit on purchases, the working capital requirements are reduced

Option 2, is the correct option