The Time from Ordering an Item Until It Is Received

question 116

Multiple Choice

The time from ordering an item until it is received and ready for use or sale is referred to as

• A) order cycle time.
• B) order handling time.
• C) order-to-ship duration.
• D) purchase cycle.
• E) logistics cycle.

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Definitions:

Adjusting Journal Entry

An entry made in accounting records at the end of an accounting period to allocate income and expenditure to the correct period.

Insurance Premium

The amount of money an individual or business pays for an insurance policy, which provides financial protection against losses.

Accrual

An accounting method where revenue and expenses are recorded when they are earned or incurred, regardless of when the cash is received or paid.

Crediting Wages Payable

The accounting action of acknowledging that a company owes wages to its employees, which decreases the wages payable account.