If a Firm Has a Cash Cycle of 25 Days

question 103

Multiple Choice

If a firm has a cash cycle of 25 days and an operating cycle of 80 days, what is its average payment period?

• A) 25
• B) 80
• C) 55
• D) 105

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Definitions:

Sandpaper

An abrasive material consisting of paper or cloth with mineral grains fixed on its surface, used for smoothing or polishing surfaces.

Cranking Control Circuit

An electrical circuit in vehicles designed to facilitate the starting of the engine.

High Current Circuit

An electrical circuit designed to handle large amounts of current, typically used in power distribution or large electrical devices.

Starter Relay

An electrical device that transmits power to the starter motor, initiating the engine's operation in a vehicle.