Tomas Industries Has an Inventory Period of 132 Days, an Accounts

question 236

Multiple Choice

Tomas Industries has an inventory period of 132 days, an accounts payable period of 94 days, and an accounts receivable period of 43 days. What is the length of the cash cycle?

• A) -5 days
• B) 5 days
• C) 81 days
• D) 103 days
• E) 183 days

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Definitions:

Precision Measurement

The process of measuring objects with high accuracy and resolution to ensure they meet specified dimensions or standards.

Micrometers

Precision measuring instruments capable of taking very small measurements, often used in mechanical engineering and machining to ensure accuracy to the thousandth of a millimeter.

Dial Calipers

Precision measuring tools that use a calibrated dial to measure the distance between two opposite sides of an object, often used in mechanical engineering and metalworking.

Flat Rate

A pricing structure where a service or product is offered at a consistent price, regardless of different variables that might affect cost.