Calculate the Operating Cash Cycle in Days If All Sales

question 60

Multiple Choice

Calculate the operating cash cycle in days if all sales are for cash, inventory is turned over 8 times a year and creditors are paid on average 5 times a year.

• A)-27.4 days.
• B)52.1 days.
• C)125.1 days.
• D)27.4 days.

---

Definitions:

Statute of Limitations

It refers to the maximum period one can wait before filing a lawsuit, depending on the type of case or claim.

UCC

Short for Uniform Commercial Code, a comprehensive set of laws governing commercial transactions in the United States, including sales, leases, negotiable instruments, and secured transactions.

Provisional Credit

Temporary credit issued by a bank to an account holder while disputed transactions are under investigation.

Depositary Bank

A bank authorized to hold securities and other assets in custody for others, facilitating trading of securities and other financial transactions.