Question 1
The length of time it takes a buyer to acquire, process, and sell the inventory is the
◦ Receivables Cycle.
◦ Receivables Period.
◦ Inventory Cycle.
◦ Inventory Period.
Question 2
The primary reason for offering customers credit is to
◦ increase the predictability of cash flows.
◦ stimulate sales.
◦ smooth billing cycles.
◦ reduce the risk of nonpayment.
◦ speed cash flows.