A Firm Has an Average Accounts Payable Balance of $132,000

question 118

Multiple Choice

A firm has an average accounts payable balance of $132,000.The average number of days that the firm takes to pay its debt is 22 days.What is its average daily cost of goods sold?

• A)$4,000
• B)$132,000
• C)$126,000
• D)$6,000
• E)$6,600

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Definitions:

Loanable Funds

The market where savers supply funds for loans to borrowers, influenced by interest rates and government policies.

Shortage

A situation where the demand for a product or service exceeds its supply in a market.

Urban Land

Land located within a city or town boundary, typically characterized by higher population density and infrastructure development compared to rural areas.

Rent

A periodic payment made by a lessee to a lessor for the use of land, buildings, or other property.