The ________ Is the Time Period That Elapses from the Point

question 19

Multiple Choice

The ________ is the time period that elapses from the point when the firm purchases raw materials on account to the point when payment is made to the supplier of the goods.

• A) cash conversion cycle
• B) average payment period
• C) average age of inventory
• D) average collection period

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Definitions:

Reactive Power

Also called wattless power. Calculated by multiplying reactive voltage by reactive current. Can be produced by inductive or capacitive loads.

Inductive Reactance

The opposition an inductor provides to alternating current, directly proportional to the frequency of the current.

Pure Inductive

Refers to a circuit element or circuit that purely has inductance without any resistance, ideally opposing changes in current by generating a magnetic field.

Current

The rate of flow of electrons.