Which Number Is Needed in Calculating the Accounts Payable Turnover

question 11

Multiple Choice

Which number is needed in calculating the accounts payable turnover that is NOT normally reported on the financial statements?

• A)purchases from suppliers
• B)cost of goods sold
• C)ending inventory
• D)beginning inventory

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Definitions:

Organization Costs

Expenses incurred during the establishment of a corporation or entity, including legal fees, registration fees, and promotional expenses.

Intangible Asset

An asset that lacks physical substance, representing value due to legal or competitive rights (e.g., patents, trademarks).

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, often referred to as shareholders' equity or owners' equity.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue.