A firm has an average accounts payable balance of $180,000.Its average daily cost of goods sold is $12,000.What is the average number of days that the firm takes to pay its debt?
A)2 days
B)8 days
C)15 days
D)21 days
E)30 days

Question

Quizplus · Accepted Answer

To determine the number of days it takes for the firm to pay its accounts payable, we need to use the formula:

Average accounts payable / (Average daily cost of goods sold)
$180,000 / $12,000 = 15

Therefore, the firm takes an average of 15 days to pay its accounts payable. The correct answer is C) 15 days.

A Firm Has an Average Accounts Payable Balance of $180,000