The length of time between the day an item is purchased from a supplier until the day that supplier is paid for that purchase is called the:
A) operating cycle.
B) inventory period.
C) accounts receivable period.
D) accounts payable period.
E) cash cycle.

Question

Quizplus · Accepted Answer

The length of time between the day an item is purchased from a supplier until the day that supplier is paid for that purchase is called the accounts payable period. This is the time period for which the company has received goods or services from its suppliers but has not yet paid them.

The Length of Time Between the Day an Item Is