Generally, the longer the normal inventory holding period of customers, the longer the credit period.

Name: Generally, the longer the normal inventory holding period of customers, the longer the credit period.
Brand: Quizplus
Rating: 4.9 (39 reviews)

Question

Quizplus · Accepted Answer

If customers hold inventory for a longer period of time, they will require a longer credit period in order to pay for that inventory. This allows them to sell the inventory and generate revenue before they have to pay for it. Therefore, the statement is true.

Generally, the Longer the Normal Inventory Holding Period of Customers