If a Firm Has an Operating Cycle of 120 Days

question 112

Multiple Choice

If a firm has an operating cycle of 120 days and an average payment period of 20 days, its cash conversion cycle would be:

• A) 100 days
• B) 140 days
• C) 18 days
• D) 160 days

---

Definitions:

Spinal Cord

A long, thin, tubular structure made up of nervous tissue, which extends from the medulla oblongata in the brainstem to the lumbar region of the vertebral column.

Autonomic Nervous System

A part of the nervous system responsible for controlling involuntary bodily functions such as heartbeat and digestion.

Sympathetic

Referring to the part of the autonomic nervous system that prepares the body for action and stress responses, often described as "fight or flight."

Parasympathetic

The division of the autonomic nervous system responsible for conserving energy and promoting the "rest and digest" response.