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If Creditors Allow 30 Days from the Date of Purchase

Question 57

Multiple Choice

If creditors allow 30 days from the date of purchase before requiring payment,it takes,on average 40 days to sell inventory,and debtors take,on average,45 days to pay their accounts,the length of the cash cycle is:


A) 55 days
B) 85 days
C) 115 days
D) 45 days

Correct Answer:

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