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

question 52

Multiple Choice

The length of time between the sale 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:

Bailor

An individual who temporarily transfers possession of a piece of personal property to another (the bailee) under an agreement.

Gross Negligence

An act committed with extreme reckless disregard for the property or life of another person.

Bailee

A person or entity that temporarily holds property belonging to another under a bailment agreement, usually for a specific purpose.

Common Carriers

Companies that provide transportation services to the general public under license or authority provided by a regulatory body.