The length of time between the day a firm purchases an item from its 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 period between the day a firm purchases an item from its supplier until the day that supplier is paid for that purchase is called the accounts payable period. This is the time that the firm takes to pay off its creditors or suppliers.

The Length of Time Between the Day a Firm Purchases