The ________ is the time period that elapses from the point when the firm makes the outlay to purchase 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 time it takes for a company to pay its suppliers after purchasing raw materials on account.

The ________ Is the Time Period That Elapses from the Point