Central Supply paid off an accounts payable for a toboggan it had purchased on credit three weeks ago. The time period between today and the day Central Supply will receive cash from the sale of this toboggan is called the_________.

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11-12-2019
Business

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Central Supply paid off an accounts payable for a toboggan it had purchased on credit three weeks ago. The time period between today and the day Central Supply will receive cash from the sale of this toboggan is called the_________.

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Numenius Numenius · Answer 1 · 2019-12-11T05:55:33+01:00

Answer: Cash cycle

Explanation:

The cash cycle is basically defined as the time period in which the organization turning the raw material of the product into the cash. This process is also known as the cash conversion cycle.

The cash cycle is basically the collection of the product cash in the product cycle from the raw material to the selling of the product material.

The main stage of the cash cycle basically represent the current product sale and the cash calculation.

Therefore, Cash cycle is the correct answer.