Vista Company Has 25 Days' Payable Outstanding Based on the Current

question 6

Multiple Choice

Vista Company has 25 days' payable outstanding based on the current year's cost of goods sold of $11,315.What is Vista's balance in accounts payable?

• A)$775
• B)$870
• C)$750
• D)$675
• E)$810

---

Definitions:

Stockholders' Equity

The residual interest in the assets of an entity that remains after deducting its liabilities, representing ownership equity in a corporation.

Indirect Method

In accounting, this method is used in cash flow statements to convert net income into net cash flow from operating activities by adjusting for non-cash transactions.

Accounts Receivable

Financial obligations of customers to a firm for delivered or utilized goods or services awaiting payment.

Accrued Liabilities

Liabilities recorded on a company's balance sheet for expenses that have been incurred but not yet paid, capturing the company's financial obligations at a particular point in time.