The accounts payable turnover is calculated by purchases from suppliers divided by:
A)average accounts payable
B)beginning accounts payable.
C)ending accounts payable.
D)average accounts receivable.

Question

Quizplus · Accepted Answer

The accounts payable turnover ratio measures how many times a company pays off its accounts payable in a given period. It is calculated by dividing the total purchases made from suppliers by the average accounts payable balance during that time. Therefore, the correct choice is A - average accounts payable.

The Accounts Payable Turnover Is Calculated by Purchases from Suppliers