If a Firm Has a Cash Cycle of 25 Days

question 21

Multiple Choice

If a firm has a cash cycle of 25 days and an operating cycle of 80 days, what is its payables turnover?

• A) 14.6
• B) 4.56
• C) 6.64
• D) 55

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Definitions:

Living Organisms

Entities characterized by growth, reproduction, response to stimuli, and the ability to sustain metabolic processes.

Hypothesis

A proposed explanation for a phenomenon, made as a starting point for further investigation, that can be tested through experimentation and observation.

Testable Explanation

A hypothesis that can be supported or refuted through experimentation and observation, forming the basis of scientific inquiry.

Time-Tested

Proven to be reliable or effective over a long period of time.