BP Has a Cash Conversion Cycle of 80 Days, an Average

question 109

Multiple Choice

BP has a cash conversion cycle of 80 days, an average collection period of 25 days, and an average age of inventory of 70 days.Based on this information, BPs operating cycle is ________ days.

• A)95
• B)85
• C)75
• D)65
• E)none of the above

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Definitions:

Held-To-Maturity

A classification for investment securities which the investor has the intent and ability to hold until they mature.

Market Value

The current quoted price at which an asset or service can be bought or sold in a marketplace.

Debt Securities

Financial instruments representing money owed by the issuer to the holder, typically in the form of bonds, bills, or notes.

Held-To-Maturity

Financial assets with fixed maturities that a company has the positive intention and ability to hold until maturity.