If a Firm Has a Cash Cycle of 41 Days

question 24

Multiple Choice

If a firm has a cash cycle of 41 days and an operating cycle of 76 days, what is its average payment period?

• A) 52 days
• B) 29 days
• C) 117 days
• D) 35 days

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Definitions:

Semantic Memory

A type of long-term memory involving the capacity to recall words, concepts, or numbers, which is essential for the use and understanding of language.

Short Term Memory Store

A component of memory where small amounts of information can be kept for a short period of time.

Matrix

A rectangular array of numbers or other mathematical objects, used in mathematics and related disciplines to represent and solve systems of linear equations and other problems.

Decay

The process of degradation or decline, as in the breaking down of organic matter or the gradual loss of information from memory over time.