The time period between the day a ﬁrm pays for its inventory item and the day it received payment
from the customer who purchased that inventory item is called the accounts receivable period.

Question

Quizplus · Accepted Answer

The time period described is known as the cash conversion cycle, not the accounts receivable period. The accounts receivable period specifically refers to the time it takes to collect payment from customers after a sale.

The Time Period Between the Day a ﬁRm Pays for Its