Find the average payment period if accounts payable is $20,000, cost of goods sold is $200,000, and sales are $500,000.
A) 10
B) 36.5
C) 25
D) 14.6

Name: Find the average payment period if accounts payable is $20,000, cost of goods sold is $200,000, and sales are $500,000. A) 10 B) 36.5 C) 25 D) 14.6
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Question

Quizplus · Accepted Answer

Average Payment Period = (Accounts Payable / Cost of Goods Sold) * 365

= ($20,000 / $200,000) * 365

= 36.5

Therefore, the best choice is B, the Average Payment Period is 36.5 days.

Find the Average Payment Period If Accounts Payable Is $20,000