If a firm has a cash cycle of 71 days and an operating cycle of 139 days, what is its average payment period?
A) 210 days
B) 68 days
C) 53 days
D) 41 days

Name: If a firm has a cash cycle of 71 days and an operating cycle of 139 days, what is its average payment period? A) 210 days B) 68 days C) 53 days D) 41 days
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Question

Quizplus · Accepted Answer

The average payment period is calculated by subtracting the cash cycle from the operating cycle. Therefore, 139 days - 71 days = 68 days.

If a Firm Has a Cash Cycle of 71 Days