If a firm has a cash cycle of 8 days and an operating cycle of 39 days, what is its average payment period?
A) 47 days
B) 39 days
C) 31 days
D) 8 days

Name: If a firm has a cash cycle of 8 days and an operating cycle of 39 days, what is its average payment period? A) 47 days B) 39 days C) 31 days D) 8 days
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Question

Quizplus · Accepted Answer

The average payment period is calculated by subtracting the cash cycle from the operating cycle: 39 days - 8 days = 31 days.

If a Firm Has a Cash Cycle of 8 Days