The Length of Time That Elapses Between the Day a Firm

question 18

Multiple Choice

The length of time that elapses between the day a firm purchases an inventory item and the day that item sells 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:

Sector

A distinct subset of a market, economy, or field of operation, often categorized by similar characteristics or types of economic activity.

Services

Intangible activities or benefits that are typically provided to satisfy the needs or wants of consumers or businesses.

Goods

Tangible products or items that satisfy human wants or needs and can be transferred from one person to another.

Product Market

The platform where end products or services are made available to individuals, companies, and the general public.