Cailey's Shoppe Has an Inventory Period of 37 Days, an Accounts

question 323

Multiple Choice

Cailey's Shoppe has an inventory period of 37 days, an accounts payable period of 44 days, and an accounts receivable period of 25 days. Management is considering an offer from their suppliers to pay within 15 days and receive a 7% discount. If the new discount is taken, the accounts payable period is expected to decline by 10 days. If the new discount is taken, the operating cycle will be _____ days.

• A) 52
• B) 62
• C) 71
• D) 79
• E) 91

Grasp the concept of group identity and how it differs from merely being a collection of individuals.

Recognize the role of role differentiation in enhancing group function.

Understand the social psychological principles underlying group dynamics, including deindividuation and social facilitation.

Comprehend the importance of achieving a balance between individuality and belonging within groups.

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Definitions:

Credit Card Sales

Transactions in which customers use credit cards to pay for goods or services, creating a receivable for the seller until payment is processed by the card issuer.

Summary Journal Entry

A consolidated record that summarizes multiple transactions into a single entry within the accounting records.

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Sales Returns

Transactions where customers return previously purchased merchandise, leading to a reduction in sales revenue.