If a Firm Has a Cash Cycle of 25 Days

question 103

Multiple Choice

If a firm has a cash cycle of 25 days and an operating cycle of 80 days, what is its average payment period?

• A) 25
• B) 80
• C) 55
• D) 105

---

Definitions:

Government Intervention

Actions taken by a government to influence or directly regulate economic, social, or other activities within a country.

Socioeconomic

Pertaining to the relationship between social and economic elements.

Neo-classical

Pertaining to a 19th and early 20th-century revival of interest in classical economic theories, focusing on marginal utility, distribution of resources, and the roles of supply and demand.

Classical Economic

refers to a school of thought in economics that emphasizes the importance of free markets, competition, and the self-regulating nature of economic systems, originating mainly from the ideas of Adam Smith.