If a Firm Has a Cash Cycle of 55 Days

question 91

Multiple Choice

If a firm has a cash cycle of 55 days and an operating cycle of 150 days, what is its payables turnover?

• A) 9.50
• B) 6.64
• C) 3.84
• D) 2.60

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Definitions:

Essay Writing

The act of composing a written piece of work, typically based on a specific topic or argument.

Fundamental Attribution Error

This refers to the tendency of individuals to overemphasize personality traits and underestimate situational factors when explaining another's behavior.

Actor-Observer Effect

A social psychology phenomenon where individuals attribute their own actions to situational factors but the actions of others to their personalities.

Situational Attributions

The process of attributing someone's behavior to external factors, such as situational influences or environmental conditions, as opposed to personal characteristics.