What Is the Payable Period for a Firm with Average

question 57

Multiple Choice

What is the payable period for a firm with average accounts payable of $4 million and annual cost of goods sold of $44 million.

• A) 20.0 days
• B) 30.0 days
• C) 35.6 days
• D) 33.2 days

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Definitions:

Replacement Rate

In demography, it refers to the fertility rate at which a population exactly replaces itself from one generation to the next, without migration. In economics, it can refer to the ratio of benefits (like pensions) replacing employment income.

Population Change

The variation in the number of individuals in a population over time, influenced by factors such as birth rates, death rates, immigration, and emigration.

Oil Reserve

Stocks of crude oil or refined petroleum products held underground or in storage facilities controlled by countries or corporations for future use.

Profit

The financial gain realized when revenue from business activities exceeds the costs and expenses involved in operating.