A Firm Has an Average Age of Inventory of 90

question 11

Multiple Choice

A firm has an average age of inventory of 90 days, an average collection period of 40 days, and an average payment period of 30 days. The firm's operating cycle is ________ days.

• A) 110
• B) 130
• C) 120
• D) 70

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Definitions:

Identity Vs. Role Confusion

This term refers to a stage in Erik Erikson's theory of psychosocial development where adolescents explore their independence and develop a sense of self.

Generativity Vs. Stagnation

A stage of adult development, according to Erik Erikson, focusing on the challenge of contributing to society and supporting future generations.

Trust Vs. Mistrust

Erickson's first stage of psychosocial development where infants learn to trust others based on the consistency of caregivers' responses, or develop mistrust.

Autonomy Vs. Self-Doubt

A stage in Erik Erikson's theory of psychosocial development where toddlers work to master physical environment while maintaining a sense of self-control and autonomy, as opposed to feeling inadequate and doubtful of their abilities.