If accounts payable are paid 12 times a year,what,on average,is the accounts payable turnover period in days?

Question

Quizplus · Accepted Answer

The formula for accounts payable turnover period is:

Accounts Payable Turnover Period = (Accounts Payable / Cost of Goods Sold) x Number of Days

We know that accounts payable are paid 12 times a year, which means the turnover period is 12 times a year or 365/12 = 30.4 days.

So the answer is C) 30.4 days.

If Accounts Payable Are Paid 12 Times a Year,what,on Average,is