If a firm has a cash cycle of 30 days and an operating cycle of 64 days, what is its average payment period?
A) 30 days
B) 34 days
C) 64 days
D) 94 days

Name: If a firm has a cash cycle of 30 days and an operating cycle of 64 days, what is its average payment period? A) 30 days B) 34 days C) 64 days D) 94 days
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Question

Quizplus · Accepted Answer

The average payment period is calculated as the operating cycle minus the cash cycle, which is 64 days - 30 days = 34 days.

If a Firm Has a Cash Cycle of 30 Days