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 receivable period?

A. 46 days
B. 57 days
C. 61 days
D. 72 days
E. 118 days
Correct Answer: B

A: This is the number of days in the accounts payable period.
C: This is the number of days in the inventory period.
D: This is the number of days in the cash cycle.
E: This is the number of days in the operating cycle.

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