If a Firm Has a Cash Cycle of 71 Days

question 108

Multiple Choice

If a firm has a cash cycle of 71 days and an operating cycle of 139 days, what is its average payment period?

• A) 210 days
• B) 68 days
• C) 53 days
• D) 41 days

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Definitions:

Percussion

A diagnostic technique used in physical examination to tap on the body surface with the fingers or a small instrument to evaluate the condition of the organs beneath by the sound produced.

Inspection

The act of examining something carefully in order to determine its condition.

Bimanual Method

A technique involving the use of both hands for medical examination or procedures, often used in gynecological exams.

Dorsum

The upper surface of an organ or body part, such as the back of the hand or the top side of the foot.