If a firm has a cash cycle of 47 days and an operating cycle of 92 days, what is its average payment period?
A) 45
B) 47
C) 92
D) 139

Name: If a firm has a cash cycle of 47 days and an operating cycle of 92 days, what is its average payment period? A) 45 B) 47 C) 92 D) 139
Brand: Quizplus
Rating: 4.9 (37 reviews)

Question

Quizplus · Accepted Answer

45The average payment period is calculated by subtracting the cash cycle from the operating cycle. Therefore, 92 days (operating cycle) - 47 days (cash cycle) = 45 days.

If a Firm Has a Cash Cycle of 47 Days