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

Name: 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
Brand: Quizplus
Rating: 4.9 (46 reviews)

Question

Quizplus · Accepted Answer

The average payment period is calculated by subtracting the cash cycle from the operating cycle. Therefore, 88 days (operating cycle) - 39 days (cash cycle) = 49 days.

If a Firm Has a Cash Cycle of 39 Days