The Length of Time Between the Payment for Inventory and the Collection

question 31

Multiple Choice

The length of time between the payment for inventory and the collection of cash from receivables is called the:

• A)operating cycle.
• B)inventory period.
• C)trade receivables period.
• D)trade payables period.
• E)cash cycle.

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Definitions:

Imperfectly Competitive

Referring to market structures that do not meet the conditions of a perfect competition, often characterized by a small number of sellers, product differentiation, or barriers to entry.

MP

Member of Parliament; an elected official to the national legislative body in many countries.

Haircuts

A reduction applied to the value of assets for purposes of calculating capital requirements, risk, or losses.

Productive

The efficiency at which an individual, company, or economy can convert input resources into useful output.