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Question 1: On May 15, your firm receives 20 cases of designer pens. On June 30, your firm pays $3,250 for
the
pens. On July 15, the pens are sold on credit for $10,500. On September 10, your firm collects the
receivable in full. If each transaction occurs at the end of the business day, how many days are in the
accounts payable period?
A. 46 days.
B. 57 days.
C. 61 days.
Correct Answer: A
Explanation: B: the number of days in the accounts receivable period. C: the number of days in the
inventory period. D: the number of days in the cash cycle. 118 days: the number of days in the
operating
cycle.
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