If a firm has a cash cycle of 25 days and an operating cycle of 80 days, what is its average payment period?
A) 25
B) 80
C) 55
D) 105

Name: If a firm has a cash cycle of 25 days and an operating cycle of 80 days, what is its average payment period? A) 25 B) 80 C) 55 D) 105
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Question

Quizplus · Accepted Answer

The average payment period is calculated by subtracting the cash cycle from the operating cycle, which is 80 days - 25 days = 55 days.

If a Firm Has a Cash Cycle of 25 Days