If a Firm Has a Cash Cycle of 18 Days

question 109

Multiple Choice

If a firm has a cash cycle of 18 days and an operating cycle of 29 days, what is its payables turnover?

• A) 11
• B) 18
• C) 29
• D) 33.18

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Definitions:

High-Growth Stage

A phase in a company's life cycle characterized by rapid expansion and scaling of operations.

Company

A legal entity formed by a group of individuals to engage in and operate a business—commercial or industrial—enterprise.

Perilous Stage

A critical or dangerous phase in a process, project, or journey where the risk of failure or adverse outcomes is significantly high.

Lead Entrepreneur

The primary individual responsible for starting, organizing, and managing a new business venture.