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

Question

Quizplus · Accepted Answer

The Accounts Payable payment period can be calculated using the formula: (Accounts Payable / Cost of Goods Sold) x 365 days. Plugging in the given values, we get:

(5,000 / 25,000) x 365 = 73 days

Therefore, the statement is true.

Crazy Collectibles Has Average Accounts Payable of $5,000 and Cost