Examlex
Francenie has a checking account at Corner Bank.She wants tickets to an upcoming concert.She writes a check to Ticketmaster for the cost of two tickets.In this scenario:
Operational Cycle
The period between the acquisition of inventory by a company and the collection of payments for the goods or services sold.
Accounts Payable Period
The time between receipt of inventory and payment for it.
Cash Cycle
The period between the outflow of cash for the purchase of raw materials and the inflow of cash from the sale of goods or services, reflecting the time it takes for a business to convert its investment in inventory back into cash.
Accounts Receivable Period
The amount of time it takes for a company to collect payment from its customers after a sale has been made, indicative of the company's efficiency in collecting its receivables.
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