The Amount of Time That a Firm Holds Inventory in Stock

question 58

Multiple Choice

The amount of time that a firm holds inventory in stock is referred to as which one of the following?

• A)Inventory period
• B)Accounts receivable period
• C)Accounts payable period
• D)Operating cycle
• E)Cash cycle

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Definitions:

Economic Stability

Economic stability refers to a condition where an economy experiences steady growth, low inflation, and minimal unemployment, thereby reducing uncertainty in economic planning.

Government Policies

A course or principle of action adopted or proposed by a government, political party, or ruling authority.

Stagflation

A situation in which the inflation rate is high, economic growth rate slows, and unemployment remains steadily high.

Price Level

A measure of the average prices of goods and services in an economy at a given time, often used to evaluate inflation or deflation.