The Length of Time Between the Acquisition of Inventory by a fiRm

question 95

Multiple Choice

The length of time between the acquisition of inventory by a firm and the payment by the firm for that inventory is called the:

• A)operating cycle.
• B)inventory period.
• C)trade receivables period.
• D)trade payables period.
• E)cash cycle.

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Definitions:

Incentives

Rewards or stimuli that motivate individuals to perform certain actions or behave in specific ways.

Physiological State

The condition of the body at a given time, including aspects such as temperature, heart rate, and hormone levels.

Motivational State

The internal condition that activates and directs behavior towards achieving specific goals, influenced by desires, needs, and ambitions.

Homeostasis

The ability of an organism to maintain internal equilibrium by adjusting its physiological processes.