If a firm has a cash cycle of 30 days and an operating cycle of 92 days, what is its average payment period?
A) 92 days
B) 62 days
C) 34 days
D) 30 days

Name: If a firm has a cash cycle of 30 days and an operating cycle of 92 days, what is its average payment period? A) 92 days B) 62 days C) 34 days D) 30 days
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The average payment period is calculated by subtracting the cash cycle from the operating cycle. Therefore, 92 days (operating cycle) - 30 days (cash cycle) = 62 days.

If a Firm Has a Cash Cycle of 30 Days