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) accounts receivable period.
D) accounts payable period.
E) cash cyclE.

Question

Quizplus · Accepted Answer

The length of time between the acquisition of inventory and the payment for that inventory is the accounts payable period. This is because accounts payable represent the amount owed to suppliers for inventory purchases.

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