The Time Span During Which Cash Is Paid for Goods

question 5

Multiple Choice

The time span during which cash is paid for goods and services,which are then sold to customers from whom the business collects cash,is called the ________.

• A) production time
• B) operating cycle
• C) accounting cycle
• D) sales time

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Definitions:

Pegged Exchange Rate

A fixed exchange rate system in which a currency's value is fixed against the value of another currency or a basket of other currencies.

Chinese Yuan

The official currency of the People's Republic of China, used as a medium of exchange in mainland China.

Inflation

The rate at which the general level of prices for goods and services rises, eroding purchasing power.

Fixed Exchange-Rate System

A monetary system in which the value of a nation's currency is fixed to the value of a single currency, a group of currencies, or a tangible asset such as gold.