If a firm has a cash cycle of 28 days and an operating cycle of 86 days, what is its average payment period? a) 58 b) 114 c) 28 d) 86

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter15: Capital Investment Analysis
Section: Chapter Questions
Problem 3SEQ: The expected period of time that will elapse between the date of a capital investment and...
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What is its average payment period?

If a firm has a cash cycle of 28 days and an
operating cycle of 86 days, what is its average
payment period?
a) 58
b) 114
c) 28
d) 86
Transcribed Image Text:If a firm has a cash cycle of 28 days and an operating cycle of 86 days, what is its average payment period? a) 58 b) 114 c) 28 d) 86
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