The Amount of Time Between Order Placement,receipt of the Customer's

question 154

Multiple Choice

The amount of time between order placement,receipt of the customer's payment,and order shipment is known as the:

• A) 3PL cycle
• B) product life cycle
• C) purchase cycle
• D) order-to-cash cycle
• E) float

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Definitions:

Accounts Receivable

Funds that customers owe to a company for products or services they have received but have not yet compensated for.

Inventory

The total amount of goods that a company holds, intending to sell them in the normal course of business.

Financing Activities

Transactions that result in changes in the size and composition of the equity capital or borrowings of a company.

Cash Flow

The total volume of financial transfers happening within a business, crucially affecting its ability to handle financial obligations.