BP Has an Operating Cycle of 150 Days, an Average

question 109

Multiple Choice

BP has an operating cycle of 150 days, an average collection period of 40 days, and an average payment period of 20 days. Based on this information, BPs average age of inventory is ________ days.

• A) 130
• B) 60
• C) 90
• D) 110

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Definitions:

Stable

Unchanging and consistent over time; a term often used to describe equilibriums or conditions that do not fluctuate drastically.

Attitudes

A psychological tendency expressed by evaluating an entity with some degree of favor or disfavor, shaping our responses toward that entity.

Unconscious

A part of the mind that is inaccessible to the conscious mind but that affects behavior and emotions, according to Freudian psychology.

Negative

Characterized by the absence rather than the presence of distinguishing features.