If a Firm Has a Cash Cycle of 10 Days

question 58

Multiple Choice

If a firm has a cash cycle of 10 days and an operating cycle of 43 days, what is its payables turnover?

• A) 11.06
• B) 36.5
• C) 8.48
• D) 33

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Definitions:

Disjunctive

Refers to a situation or task requiring a solution that can come from any single group member who possesses the necessary knowledge, solving the problem more efficiently than others.

Compensatory

Compensatory refers to something designed to counterbalance or make up for a deficiency or lack.

Social Loafing

The tendency of individuals to exert less effort when working in a group than when working alone.

Coaction Task

A type of group task where individuals work simultaneously and independently on the same task, often in each other's presence but without direct interaction.