The length of time between the acquisition of inventory by a ﬁrm and the payment by the ﬁrm for that inventory is called the:
A)operating cycle.
B)inventory period.
C)trade receivables period.
D)trade payables period.
E)cash cycle.

Question

Quizplus · Accepted Answer

The length of time between the acquisition of inventory by a firm and the payment by the firm for that inventory is referred to as the trade payables period. This period reflects the time a company takes to pay its suppliers after receiving goods or services.

The Length of Time Between the Acquisition of Inventory by a ﬁRm