If a Firm Has a Cash Cycle of 25 Days

question 21

Multiple Choice

If a firm has a cash cycle of 25 days and an operating cycle of 80 days, what is its payables turnover?

• A) 14.6
• B) 4.56
• C) 6.64
• D) 55

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Definitions:

Systematic Change

Structural alterations within an organization or system that are planned and implemented to achieve long-term improvements.

Organic Change

The natural, ongoing, and gradual changes that occur within an organization or system, typically resulting from internal growth, adaptation, or evolution.

Espoused Theory

The beliefs, values, and principles that individuals claim to follow, often contrasted with their actual behavior (theory-in-use).

Theory-in-Use

Theory-in-Use refers to the framework or model that individuals actually use in their actions, often unconsciously, as opposed to the models or theories they may explicitly claim to follow.