The firm's period between paying suppliers for products and collecting funds from customers who purchase these products is referred to as the _____.
A) earnings cycle
B) cash conversion cycle
C) inventory turnover cycle
D) liquidity period cycle
E) trade cycle

Question

Quizplus · Accepted Answer

The cash conversion cycle measures the time between when a company pays its suppliers for inventory and when it receives cash from its customers for the sale of that inventory, making it the correct answer.

The Firm's Period Between Paying Suppliers for Products and Collecting