A Firm Has an Operating Cycle of 170 Days, an Average

question 138

Multiple Choice

A firm has an operating cycle of 170 days, an average payment period of 50 days, and an average age of inventory of 145 days. The firm's average collection period is ________ days.

• A) 25
• B) 75
• C) 95
• D) 120

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Definitions:

Wicked Problems

Complex challenges characterized by high levels of uncertainty, interconnectedness, and the absence of a single, straightforward solution.

Access To Capital

The ability of a business or individual to obtain financial resources and funding necessary for operations, expansion, or investment.

Capital Markets

Financial markets for buying and selling equity and debt instruments, contributing to the efficient allocation of resources.

Not-For-Profit Sectors

Segments of the economy that are organized and operated for purposes other than generating profit, focusing instead on social, cultural, or charitable missions.