Question

The accounts receivable period is the time that elapses between the _____ and the ____.

a.purchase of inventory; payment to the supplier
b.purchase of inventory; collection of the receivable
c.sale of inventory; payment to supplier
d.sale of inventory; collection of the receivable
e.sale of inventory: billing to customer

Answer 1

The accounts receivable period covers the span from the sale of inventory to the collection of the receivable. It is a measure of a company's efficiency in collecting sales revenues.correct option is d.

Step-by-step explanation:

The accounts receivable period is a key component of a company's cash conversion cycle and measures the time period that elapses between the sale of inventory and the collection of the receivable.

This time frame indicates how efficient a company is at collecting payments after a sale has been made. The correct answer to this question is option (d).