If a Firm Has a Cash Cycle of 30 Days

question 125

Multiple Choice

If a firm has a cash cycle of 30 days and an operating cycle of 92 days, what is its average payment period?

• A) 92 days
• B) 62 days
• C) 34 days
• D) 30 days

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Definitions:

Factor Analysis

A statistical method used to describe variability among observed, correlated variables in terms of potentially lower number of unobserved variables, known as factors.

Source Traits

Fundamental personality characteristics that are stable across time and situations, proposed to underlie human behavior.

Trait Theories

Theories that endeavor to describe the characteristics that make up human personality in an effort to predict future behavior.

Psychodynamic Theories

A set of psychological theories that emphasize the influence of the unconscious mind and childhood experiences on behavior.