The time between the points at which a firm pays for raw materials and at which it receives payment for finished goods is

Question

Quizplus · Accepted Answer

The time between paying for raw materials and receiving payment for finished goods is known as the cash conversion cycle. It represents the length of time required for a company to convert resources into cash. The cash conversion cycle is calculated by adding the average collection period to the average age of inventory and subtracting the average payment period. Therefore, option B is the correct answer.

The Time Between the Points at Which a Firm Pays