If a firm has a cash cycle of 10 days and an operating cycle of 43 days, what is its average payment period?
A) 10
B) 33
C) 43
D) 53

Name: If a firm has a cash cycle of 10 days and an operating cycle of 43 days, what is its average payment period? A) 10 B) 33 C) 43 D) 53
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Question

Quizplus · Accepted Answer

The average payment period is calculated by subtracting the cash cycle from the operating cycle. Therefore, 43 days (operating cycle) - 10 days (cash cycle) = 33 days.

If a Firm Has a Cash Cycle of 10 Days