Day: December 11, 2021

The following information has been calculated from the accounts of a business.

• days taken to pay creditors – 36 days
• days taken by debtors to pay – 65 days
• stock turnover in days – 14 days

What is the cash operating cycle?

Select ONE answer:

1. 15 days
2. 29 days
3. 43 days
4. 79 days

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct ==> 65 + 14 – 35
4. Not correct

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