If a Firm Has a Cash Cycle of 39 Days

question 78

Multiple Choice

If a firm has a cash cycle of 39 days and an operating cycle of 88 days, what is its average payment period?

• A) 39 days
• B) 49 days
• C) 88 days
• D) 127 days

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Definitions:

24-Hour Clock Time

A rephrased definition: A method of telling time that ranges from 00:00 to 23:59, predominantly used in military, aviation, and other global contexts to avoid ambiguity.

Closed Questions

Questions designed to elicit a yes/no or another simple, specific answer, limiting the respondent's opportunity to provide detailed responses.

Leading Questions

Questions structured in a way that subtly prompts the recipient to give a particular answer, often used in interviews and surveys.

Open-ended Questions

Questions formulated to elicit more detailed and expansive responses, allowing for a wide range of answers.