Central Supply purchased a toboggan for inventory this morning and paid cash for it.The time period between today and the day Central Supply will receive cash from the sale of this toboggan is called the:

Question

Quizplus · Accepted Answer

The time period between purchasing the toboggan and receiving cash from its sale is known as the cash cycle. This includes the time period it takes to sell the toboggan, collect cash from the customer, and compensate any accounts payable associated with its purchase. Therefore, the best choice is E, the cash cycle.

Central Supply Purchased a Toboggan for Inventory This Morning and Paid