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:

Institutional Advertisements

Advertisements designed to build goodwill or an image for an organization rather than promote a specific product or service.

Goodwill

An intangible asset that represents the value of a company’s brand name, customer relationships, employee relations, and other factors not physical in nature.

Image

The perception or representation of someone or something as reflected through media, design, or public opinion.

Comparative Advertising

A marketing strategy where a brand compares its products or services directly with those of competitors in order to highlight its advantages.