The length of time between the acquisition of inventory and the collection of cash from receivables is called the:
A)operating cycle.
B)inventory period.
C)trade receivables period.
D)trade payables period.
E)cash cycle.

Question

Quizplus · Accepted Answer

The operating cycle is the time period between the acquisition of inventory and the collection of cash from receivables.

The Length of Time Between the Acquisition of Inventory and the Collection