A Firm with a Operating Cycle of 200 Days and an Cash

question 35

Multiple Choice

A firm with a operating cycle of 200 days and an cash conversion cycle of 120 days has an average payment period of:

• A) 320
• B) 80
• C) 40
• D) 20

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Definitions:

Government Business Enterprise

A government-owned entity that operates with the intention to produce goods or services for the market and is expected to be financially self-sufficient.

Statement Of Operations

A financial document, also known as an income statement, showing a company's revenues, expenses, and profits or losses over a specified period.

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Revenue Recognition

The accounting principle determining the conditions under which revenue is recognized and how it is measured; typically, it is recognized when it is earned and measurable.