Abbot Corporation Has an Average Collection Period of 49 Days

question 50

Multiple Choice

Abbot Corporation has an average collection period of 49 days, an inventory conversion period of 83 days, and a payables deferrable period of 36 days. What is Abbott's operating cycle?

• A) 96 days
• B) 70 days
• C) 85 days
• D) 132 days

---

Definitions:

First Year

The initial period or the start phase of a specific time frame, such as a student's first year in university or an employee's first year at a job.

Informal Reward Programs

Recognition systems that are not officially documented but are practiced to motivate employees.

Visible Rewards

Visible rewards refer to tangible or observable rewards given to individuals or groups for achieving certain goals or exhibiting desirable behaviors, often used in motivational strategies.

Job Titles

Formal names used to describe specific positions or roles within an organization.