The Time Between When the Firm Pays Its Suppliers and When

question 27

Multiple Choice

The time between when the firm pays its suppliers and when it collects money from its customers is known as the:

• A)operating cycle
• B)cash conversion cycle
• C)accounts receivable period
• D)none of the above

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Definitions:

Appropriateness

The degree to which an action, response, or behavior matches the expected norms or circumstances.

Reciprocity/Obligation Rule

The social norm of responding to a positive action with another positive action, fostering mutual benefit.

Rejection-Then-Retreat Approach

A persuasive technique where an initially larger request is made knowing it will be rejected so that a smaller request (the desired outcome) seems more reasonable.

Reciprocity

A social principle where positive actions lead to similar responses by others, fostering mutual benefit or exchange.