A Firm Has an Operating Cycle of 120 Days, an Average

question 166

Multiple Choice

A firm has an operating cycle of 120 days, an average collection period of 40 days, and an average payment period of 30 days. The firm's average age of inventory is ________ days.

• A) 80
• B) 50
• C) 90
• D) 70

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Definitions:

Experimental Task

A controlled task or activity designed to test hypotheses in a scientific study, often under laboratory conditions.

Internal Validity

The degree to which an experiment establishes a trustworthy cause-and-effect relationship between a treatment and an outcome.

Transformational Equivalence

The understanding that an object remains the same even if it undergoes a transformation that changes its appearance.