The length of time between the purchase of inventory and the receipt of cash from the sale of 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 operating cycle is the correct term for the length of time between the purchase of inventory and the receipt of cash from the sale of that inventory. It encompasses the entire process from buying inventory, selling it, and collecting the cash from sales.

The Length of Time Between the Purchase of Inventory and the Receipt