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:

Smooth Muscle Relaxation

A physiological process whereby the smooth muscle fibers relax, leading to a decrease in tension in the muscles found within the walls of certain hollow organs or tubes in the body, such as the intestines or blood vessels.

Vasodilation

The widening of blood vessels, which decreases blood pressure and allows increased blood flow.

Active Natural Immunity

Immunity that develops after exposure to a disease-causing organism, leading to the production of antibodies and immunological memory.

Developing Disease

The process by which a disease begins to form or increase in severity, involving the progression from initial symptoms to more severe conditions.