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

question 90

Multiple Choice

The length of time between the sale of inventory and the collection of the payment for that sale 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:

Population Mean

The average value of all the members of a set or population.

Graduate Management Admission Test

A standardized test used by business schools as part of the admissions process, assessing analytical, writing, quantitative, verbal, and reading skills in written English.

Confidence Interval

A spread of statistical figures, obtained by analyzing samples, seen as encompassing the unseen value of a population parameter.

Standard Deviation

An index to assess the range of fluctuation or deviation in a series of numbers.