CFA Practice Question

There are 120 practice questions for this study session.

CFA Practice Question

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
Explanation: B: This is the number of days in the accounts receivable period.
C: This is the number of days in the inventory period. The number of days in the cash cycle is 72. The number of days in the operating cycle is 118.

User Contributed Comments 3

User Comment
djop2002 guys,any idea here?
djop2002 ok....sometime the easiest things are the hardest.Just have to substract dates and there is the answer...
FIGER Simple you get the material on May 15 (at the end of the day) hence 16 days of May (31-15) and 30 days of june. You pay them at the end of the day. Read the question.
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