Find the Average Payment Period If Accounts Payable Is $20,000

question 45

Multiple Choice

Find the average payment period if accounts payable is $20,000, cost of goods sold is $200,000, and sales are $500,000.

• A) 10
• B) 36.5
• C) 25
• D) 14.6

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Definitions:

Inferential Statistics

Statistical methods used to draw conclusions or make predictions about a population based on a sample.

Statistically Meaningful

Refers to results in data analysis that are unlikely to have occurred by chance and therefore indicate a significant effect or relationship.

Scientific Enterprise

The organized and systematic pursuit of knowledge involving the observation, identification, description, experimental investigation, and theoretical explanation of phenomena.

Ideal Scientist

A conceptual model of a scientist who embodies the virtues of curiosity, skepticism, objectivity, and the ethical pursuit of knowledge.