Which of the following is the best definition of inventory period?

Multiple Choice

• The time between cash disbursement and cash collection.

• Graphical representation of the operating cycle and the cash cycle.

• A promise by the firm, included in the debt contract, to perform certain acts. A restrictive covenant imposes constraints on the firm to protect the interests of the debtholder.

• A secured short-term loan to purchase inventory.

• The time it takes to acquire and sell inventory.