Meryl Enterprises Currently Has an Operating Cycle of 76

question 26

Multiple Choice

Meryl Enterprises currently has an operating cycle of 76.4 days. The company is implementing some operational changes that are expected to increase the accounts receivable period by 2.2 days, decrease the inventory period by 5.3 days, and increase the accounts payable period by 1.5 days. What is the new operating cycle expected to be?

• A) 78.0 days
• B) 74.8 days
• C) 73.3 days
• D) 79.5 days
• E) 71.8 days

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Definitions:

General Tendencies

A term that refers to the common or usual patterns of behavior, thought, or emotion observed in an individual or group.

Alternate Form Reliability

A measure of reliability used to assess the consistency of test scores between different versions of the same test.

Test-retest Reliability

Test-retest reliability is a measure of consistency where the same test is administered to the same group of people at different times to assess the reliability over time.

Construct Validity

The extent to which a test or instrument accurately measures the theoretical, non-observable constructs it is designed to assess.