A Firm Has an Average Accounts Payable Balance of $180,000

question 54

Multiple Choice

A firm has an average accounts payable balance of $180,000.Its average daily cost of goods sold is $12,000.What is the average number of days that the firm takes to pay its debt?

• A)2 days
• B)8 days
• C)15 days
• D)21 days
• E)30 days

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Definitions:

Home Runs

A term used in baseball when a batter hits the ball out of the field bounds, allowing them to circle the bases and score a run without being put out.

Histogram

A graphical representation of the distribution of numerical data, usually showing the frequency of data intervals.

Estimated Lifetimes

Predictions or calculations regarding the duration or length of time something is expected to last.

Histogram

A graphical representation of the distribution of numerical data, typically shown as bars indicating the frequency of different intervals of values.