The average length of time it takes customers to pay for the merchandise they buy is called the:

A) Cash cycle.
B) Accounts payable period.
C) Operating cycle.
D) Accounts receivable period.
E) Accounts receivable turnover rate.

Accounts Receivable Period

The common interval before a business secures payments from its customers for products or services rendered on credit.

Operating Cycle

The time period between the acquisition of inventory and the collection of cash from accounts receivable.

Cash Cycle

The amount of time required for a company to turn its inventory and various assets into cash through sales revenue.