A Firm Has an Average Age of Inventory of 90

question 208

Multiple Choice

A firm has an average age of inventory of 90 days, an average collection period of 40 days, and an average payment period of 30 days. The firm's operating cycle is ____________days.

• A) 130
• B) 110
• C) 70
• D) 120

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Definitions:

Yellow Marrow

A type of bone marrow primarily consisting of fat cells, found in the cavities of long bones.

Medullary Cavity

The canal that runs through the center of the diaphysis.

Gout

A type of arthritis characterized by sudden, severe attacks of pain, redness, and tenderness in joints, often occurring in the big toe.

Medical Assistant

A healthcare professional who supports medical practitioners by performing a variety of administrative and clinical tasks.