The Time Interval Between Paying for Raw Materials and Collecting

question 84

Multiple Choice

The time interval between paying for raw materials and collecting on sales of finished goods is known as the:

• A) inventory cycle.
• B) matching cycle.
• C) cash conversion cycle.
• D) accounts receivable cycle.

---

Definitions:

Forger

An individual who commits fraud by creating or altering a document with the intent to deceive.

Negotiable Instrument

A signed document containing an unconditional promise or order to pay a specified sum of money to a designated person or to the bearer of the document.

Maker

In terms of financial instruments like checks or promissory notes, the maker is the party that promises to pay a certain amount of money.

Bearer

A person who is in possession of a negotiable instrument that is payable to the “bearer” or “cash” or that has been indorsed in blank.