The Length of Time Between the Acquisition of Inventory and the Collection

question 84

Multiple Choice

The length of time between the acquisition of inventory and the collection of cash from receivables 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:

Electronic Repair Revenues

Income generated from services related to fixing electronic devices.

Expenses

Costs incurred in the process of earning revenue, typically reflected in the income statement to calculate net income.

Financial Information

Data relating to the financial status, performance, and changes in financial position of an entity.

Revenues

The cumulative income derived from transactions involving goods or services tied to the main business functions.