If a firm has a cash cycle of 25 days and an operating cycle of 57 days, what is its average payment period?
A) 25 days
B) 32 days
C) 57 days
D) 82 days

Name: If a firm has a cash cycle of 25 days and an operating cycle of 57 days, what is its average payment period? A) 25 days B) 32 days C) 57 days D) 82 days
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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 57 days - 25 days = 32 days.

If a Firm Has a Cash Cycle of 25 Days