The Length of Time Between the Sale of Inventory and the Collection

question 357

Multiple Choice

The length of time between the sale of inventory and the collection of cash from receivables is called the __________________.

• A) Operating cycle.
• B) Inventory period.
• C) Accounts receivable period.
• D) Accounts payable period.
• E) Cash cycle.

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Definitions:

Unknown Quantities

Variables in mathematical equations or problems that are not yet determined or are to be solved for.

Proportion

A part, share, or number considered in comparative relation to a whole, often expressed as a fraction or percentage.

Unknown Quantities

Variables or values in mathematics and science that are not known and need to be solved for in an equation or experiment.

Proportion

A statement that two ratios or fractions are equal.