Calculate the Operating Cash Cycle If the Inventory Turnover Period

question 19

Multiple Choice

Calculate the operating cash cycle if the inventory turnover period is 21 days, the debtor's turnover period is 32 days and the creditor turnover period is 40 days.

• A) 13 days
• B) 53 days
• C) -13 days
• D) 93 days

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Definitions:

Preoperational Child

A stage in Piaget's theory of cognitive development describing children aged 2 to 7, characterized by the development of language and symbolic thought but limited in logical reasoning.

Conservation

In cognitive psychology, the principle that properties of substances such as weight and mass remain the same (are conserved) when superficial characteristics such as their shapes or arrangement are changed.

Irreversibility

A cognitive concept where an individual does not understand that actions can be reversed to return to the original state.

Language Development

The method through which young children acquire the ability to comprehend and express language in their early years.