Danio Corp. has average Accounts Payable of $5,000 and cost of goods sold of $25,000; the Accounts Payable payment period for Danio is 73 days.

Name: Danio Corp. has average Accounts Payable of $5,000 and cost of goods sold of $25,000; the Accounts Payable payment period for Danio is 73 days.
Brand: Quizplus
Rating: 4.8 (47 reviews)

Question

Quizplus · Accepted Answer

The Accounts Payable payment period formula is (Accounts Payable / Cost of Goods Sold) * 365. Plugging in the given values, we get (5,000 / 25,000) * 365 = 73 days. Therefore, the statement is true.