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

question 83

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

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Definitions:

Formal Power

The legitimate authority granted to a person or organization, allowing them to make decisions, allocate resources, and direct others within an established structure.

Life Cycle

A series of stages through which something (such as a product, project, or organism) goes from its beginning to its end, encompassing growth, maturity, and decline phases.

Venture Startup

The initial phase in the creation of a new business or enterprise, involving concept development and the launch of operations.

Internally Driven

Motivated by personal values, desires, or goals rather than external pressures.