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)15 days
C)8 days
D)21 days

Question

Quizplus · Accepted Answer

The average number of days to pay its debt is calculated by dividing the average accounts payable by the average daily cost of goods sold: $180,000 / $12,000 = 15 days.

A Firm Has an Average Accounts Payable Balance of $180