The ________ is the time period that elapses from the point when the firm purchases raw materials on account to the point when payment is made to the supplier of the goods.
A) cash conversion cycle
B) average payment period
C) average age of inventory
D) average collection period

Question

Quizplus · Accepted Answer

The average payment period is the specific time frame that describes the duration from when a company acquires raw materials on credit to when it settles the payment with its suppliers. This period focuses solely on the company's payables and the efficiency in managing its payments to suppliers.

The ________ Is the Time Period That Elapses from the Point