The length of time between the payment for inventory and the collection of cash from receivables 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 cash cycle refers to the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales, which includes the time between paying for inventory and collecting cash from receivables.

The Length of Time Between the Payment for Inventory and the Collection