The Triple Bottom Line Is

question 7

Multiple Choice

The triple bottom line is ....

• A)markings on a ship to show how heavily laden it is
• B)a book-keeping convention to minimise accounting mistakes
• C)an accounting system suitable for joint ventures between firms
• D)a company reporting framework designed to take into account not just financial outcomes but also environmental and social performance

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Definitions:

Payables Turnover Rate

An efficiency ratio that measures how quickly a company pays off its suppliers, calculated as cost of goods sold divided by average accounts payable.

Accounts Payable Balance

The total amount of short-term liabilities or obligations a company owes to its creditors or suppliers.

Sales

The total revenue generated from goods or services sold by a company during a specific period.

COGS

Stands for Cost of Goods Sold, which is the direct costs attributable to the production of the goods sold by a company.