Which of the Following Is the Best Definition of Inventory

question 266

Multiple Choice

Which of the following is the best definition of inventory period?

• A) The time between cash disbursement and cash collection.
• B) Graphical representation of the operating cycle and the cash cycle.
• C) A promise by the firm, included in the debt contract, to perform certain acts. A restrictive covenant imposes constraints on the firm to protect the interests of the debtholder.
• D) A secured short-term loan to purchase inventory.
• E) The time it takes to acquire and sell inventory.

---

Definitions:

Global Reporting Initiative

An international organization that helps businesses and governments understand and communicate their impact on issues such as climate change, human rights, and corruption.

Sustainability Reporting

The practice of disclosing an organization's environmental, social, and governance (ESG) performance to stakeholders.

Performance Incentive Structure

A compensation system that rewards employees based on their achievement of specific performance targets.

Universal Standards

Principles or criteria that are globally accepted and applied across various industries, fields, or disciplines to ensure consistency, quality, and effectiveness.