Which one of these is frequently cited as an appropriate upper limit to the credit period offered by a seller?
A) The buyer's inventory period
B) The seller's inventory period
C) The seller's operating cycle
D) The buyer's operating cycle
E) The buyer's receivables period

Question

Quizplus · Accepted Answer

The buyer's operating cycle is often cited as an appropriate upper limit for the credit period offered by a seller because it aligns the credit terms with the time it takes for the buyer to convert purchases into cash, ensuring they have the liquidity to make payments.

Which One of These Is Frequently Cited as an Appropriate