The Length of Time Between the Day a Firm Purchases

question 35

Multiple Choice

The length of time between the day a firm purchases an item from its supplier until the day that supplier is paid for that purchase is called the:

• A)operating cycle.
• B)inventory period.
• C)accounts receivable period.
• D)accounts payable period.
• E)cash cycle.

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Definitions:

Exchange Rate

The price of one country's currency expressed in another country's currency, allowing for the exchange of currencies in global markets.

Own Currency

The currency issued and used by a country, typically managed by its central bank or monetary authority.

Home Country

The country where a company is headquartered or where an individual is a citizen.

Labor Costs

The total sum of all wages paid to employees, as well as the costs of employee benefits and payroll taxes incurred by an employer.