Match the Accounting Terms with the Description by Entering the Proper

question 16

Short Answer

Match the accounting terms with the description by entering the proper letter in the space provided.

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Definitions:

Inventory Turnover

Inventory turnover is a ratio showing how many times a company's inventory is sold and replaced over a particular period, indicating the efficiency of inventory management.

Accounts Payable

Accounts payable is an accounting term for the outstanding bills or debts a company owes to suppliers or vendors for goods or services received.

Operating Cycle

The operating cycle is the amount of time it takes for a company to purchase inventory, sell it to customers, and collect the cash from these sales, reflecting the efficiency of a company's operations.

Accounts Receivable Period

The average number of days that a company takes to collect payments from its credit sales.