Find the Average Payment Period If Accounts Payable Is 550,000

question 38

Multiple Choice

Find the average payment period if accounts payable is 550,000, cost of goods sold is $654,000, and sales are $5,000,000.

• A) 4.0
• B) 25.5
• C) 31.1
• D) None of these

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Definitions:

Convinced

Being fully persuaded or firmly believing in the truth or existence of something.

Rational Consumer

An individual who systematically pursues their self-interest by making decisions that maximize their utility and satisfaction.

Highest Indifference Curve

The indifference curve that represents the highest level of satisfaction or utility reachable for a consumer given their budget constraints.

Budget Line

A graphical representation of all possible combinations of two goods that an individual can afford to purchase at given prices and income level.