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:

Redeemed

Redeemed refers to the action of exchanging a financial instrument, such as a bond or preferred stock, for cash or another form of value, often at its maturity or a predetermined price.

Bond

A promissory note issued by a business or a governmental unit.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan amount.

Offer Price

The price at which a seller is willing to sell a security or commodity.