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If a Firm Has a Cash Cycle of 75 Days

question 37

Multiple Choice

If a firm has a cash cycle of 75 days and an operating cycle of 120 days, what is its payables turnover?


Definitions:

Discharge Obligation

The act of fulfilling or settling a responsibility, duty, or debt.

Duty Delegated

The assignment of responsibilities or tasks by someone in authority to another person or entity.

Privity of Contract

A doctrine in contract law that stipulates that only parties involved in the contract have the rights and responsibilities to enforce it.

Contract Rights

The legal benefits and obligations that are created by a contract for the parties involved.

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