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 accounts payable period refers to the length of time between the acquisition of inventory by a firm and the payment by the firm for that inventory. This period is part of the company's operating cycle, specifically focusing on the time frame in which the company must pay its suppliers for the inventory it has purchased.

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