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:

Provisional Dissolution

involves a temporary legal dissolution or suspension of an entity or agreement, pending a final decision or condition fulfillment.

Partner

In the context of business, a partner refers to a member of a partnership or firm who shares in the profits and losses and is jointly and severally liable for the partnership's debts.

Spain

A country located in southwestern Europe on the Iberian Peninsula, known for its rich history, culture, and contributions to art and science.

Full Dissolution

The complete termination or disbanding of an entity, such as a corporation, partnership, or marriage, often involving the dispersal of assets.