Which of the following describes the cash conversion cycle?

- from the payment for inventory to the sale of that inventory.

- from the purchase of inventory to the sale of that inventory.

- from the purchase of inventory to the collection of cash from the sale of that inventory.

- from the payment for inventory to the collection of cash from the sale of that inventory.

Question 2

The length of time between the acquisition of inventory and payment for it is called the

A. Inventory conversion period.

B. Operating cycle.

C. Accounts receivable period.

D. Accounts payable deferral period.