If a Firm Has a Cash Cycle of 30 Days

question 67

Multiple Choice

If a firm has a cash cycle of 30 days and an operating cycle of 64 days, what is its average payment period?

• A) 30 days
• B) 34 days
• C) 64 days
• D) 94 days

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Definitions:

Manufacturing

The process of producing goods in large quantities using machinery and labor, often within an industrial setting.

Trade

The exchange of goods, services, or both within and between countries or individuals.

Exported

The act of sending goods or services from one country to another country for sale or trade.

Territorial Concessions

Agreements in which a country cedes a portion of its territory or the rights to it to another country, often as part of a treaty or settlement.