Perfect Purchase Electronics Selected Income Statement Items, 2009

question 95

Multiple Choice

Perfect Purchase Electronics Selected Income Statement Items, 2009
Cash Sales $1,500,000
Credit Sales $7,500,000
Total Sales $9,000,000
COGS $6,000,000
Perfect Purchase Electronics
Selected Balance Sheet Accounts
12/31/2009 12/31/2008 Change
Accounts Receivable $270,000 $240,000 $30,000
Inventory $125,000 $100,000 $25,000
Accounts Payable $110,000 $90,000 $20,000
Using the information provided, what is the accounts payable cycle for the firm?

• A) 4.06 days
• B) 4.87 days
• C) 6.08 days
• D) 24.33 days

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Definitions:

Behavioral Changes

Modifications or adjustments in the actions or reactions of an individual, often as a result of interventions, experiences, or learning.

Operant Conditioning

A training technique in which a conduct's vigor is adjusted by means of incentivization or discipline.

Thorndike's Experiments

Early 20th-century experiments conducted by Edward Thorndike focusing on learning and behavior in animals, leading to the formulation of the law of effect.

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired: a response which is initially elicited by the second stimulus is eventually elicited by the first stimulus alone.