The accounts payable turnover expressed in days is 365 divided by:
A)accounts payable turnover.
B)beginning accounts payable.
C)ending accounts payable.
D)average accounts payable.

Question

Quizplus · Accepted Answer

The accounts payable turnover in days, often referred to as the payables turnover days or creditor days, is calculated by dividing 365 days by the accounts payable turnover ratio. This ratio measures how quickly a company pays off its suppliers. The formula does not directly involve beginning, ending, or average accounts payable but rather uses the turnover ratio itself to determine the average number of days the company takes to pay its accounts payable.

The Accounts Payable Turnover Expressed in Days Is 365 Divided