For How Long Is a Written Stop Payment Order Valid

question 32

Multiple Choice

For how long is a written stop payment order valid?

• A) One month.
• B) Six months.
• C) One year.
• D) Indefinitely.

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Definitions:

Credit Sales

Sales transactions where the payment is deferred to a future date, essentially extending credit to the purchaser.

Credit Period

The amount of time allowed by a seller for a buyer to pay for goods or services received, typically expressed in days.

Operating Cycle

The time period between the acquisition of inventory and when cash is collected from receivables.