If a Firm Has a Cash Cycle of 20 Days

question 110

Multiple Choice

If a firm has a cash cycle of 20 days and an operating cycle of 60 days, what is its payables turnover?

• A) 8.06
• B) 9.13
• C) 20.00
• D) 40.00

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Definitions:

Resource Use

The consumption or exploitation of natural resources by humans for manufacturing, energy production, and other economic activities.

Real Rate

The interest rate that has been adjusted to remove the effects of inflation, reflecting the true cost of borrowing.

Nominal Rate

The interest rate before adjustments for inflation, often referred to in the context of loans and savings.

Rate Of Inflation

The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.