alleryStart learning →Inventory is held 20 days, debtors pay in 10 days, creditors are paid in 50 days. The CCC is
A-10 days
B40 days
C-20 days
D80 days
Answer & Solution
Correct answer: C. -20 days
Operating cycle is 30 days and creditors are paid after 50, so CCC = 30 - 50 = -20 days.
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