The length of time that elapses between the day a firm purchases an inventory item and the day that item sells 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 inventory period specifically refers to the length of time between when a firm acquires an inventory item and when that item is sold. It is a part of the overall operating cycle but is distinct in focusing solely on inventory.

The Length of Time That Elapses Between the Day a Firm