A firm with an inventory period of 30 days, an accounts receivable period of 30 days, and an accounts payable period of 90 days has an operating cycle of _____ days.
A) 60
B) -60
C) 30
D) -30

Question

Quizplus · Accepted Answer

The operating cycle is the sum of the inventory period and the accounts receivable period, which is 30 days + 30 days = 60 days. The accounts payable period does not affect the calculation of the operating cycle.

A Firm with an Inventory Period of 30 Days, an Accounts