Answer :

The length of time between the acquisition of inventory and the collection of cash from receivables is called the: operating cycle.

what is inventory?

  • Inventory means all the items, goods, goods and materials that a business holds for sale in the market to make a profit.
  • Example: If a newsagent uses a vehicle to deliver newspapers to  customers, only the newspapers are considered inventory.
  • Inventory is an accounting term that refers to goods  in various stages of manufacturing and ready for sale.
  • Finished goods (available for sale) Work-in-progress (i.e., in the manufacturing process) Raw materials (used to produce the next finished product)
  • The four  most commonly used inventory types are raw materials, work in process (WIP), finished goods, maintenance, repairs and overhauls (MRO).
  • Understanding the nature of your inventory will help you manage it better and smarter.

To learn more about inventory from the given link :

https://brainly.com/question/14184995

#SPJ4

Other Questions