A Firm Has a Cash Conversion Cycle of 80 Days

question 56

Multiple Choice

A firm has a cash conversion cycle of 80 days, an average collection period of 25 days, and an average age of inventory of 70 days. Its operating cycle is ___________ days.

• A) 60
• B) 95
• C) 105
• D) 130

---

Definitions:

Preoperational

The stage in Jean Piaget's theory of cognitive development where children (aged 2 to 7) begin to engage in symbolic play and struggle with logic and taking the perspective of others.

Cognitive Development

Cognitive Development is the process by which a child learns to reason, solve problems, and gain knowledge through interaction with the world around them, as described in theories such as those by Piaget.

Piaget's Stages

A theory of cognitive development devised by Jean Piaget, which describes how children's understanding of the world changes through four stages of development.

Object Permanence

A cognitive development milestone in which an infant realizes that objects continue to exist even when they cannot be seen or heard.