Question

In: Finance

Which one of these is frequently cited as an appropriate upper limit to the credit period offered by a seller?

Which one of these is frequently cited as an appropriate upper limit to the credit period offered by a seller?

Multiple Choice

  • The buyer's inventory period

  • The seller's inventory period

  • The seller's operating cycle

  • The buyer's operating cycle

  • The buyer's receivables period

Solutions

Expert Solution

The operating cycle determines the limit of the buyer through which the entire process of buying on credit etc is determined till the end of purchase. Rest of the options are just intermediate steps in the cycle

Hence The buyer's operating cycle


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