If a Firm Has a Cash Cycle of 30 Days

question 67

Multiple Choice

If a firm has a cash cycle of 30 days and an operating cycle of 64 days, what is its average payment period?

• A) 30 days
• B) 34 days
• C) 64 days
• D) 94 days

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Definitions:

Semipermeable Membrane

A membrane that allows the passage of certain small molecules or ions but blocks others.

Concentration Gradient

A variation in the concentration of a substance across a distance, often leading to the diffusion of substances from an area of higher concentration to an area of lower concentration.

Diffusion

Spontaneous spreading of molecules or atoms through a fluid or gas.

Indigestible Substances

Materials that cannot be broken down and absorbed by the digestive enzymes and system of an organism, often passing through the system largely unchanged.