Which of the Following Best Describes the Payables Turnover

question 118

Multiple Choice

Which of the following best describes the payables turnover?

• A)Cost of goods sold/Average accounts payable
• B)Cost of goods sold +/-Change in inventory/Average accounts payable
• C)Average accounts payable/Cost of goods sold
• D)Average accounts payable/Cost of goods sold +/- Change in inventory

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Definitions:

Equity Method

An accounting method used to assess the investments in associate companies where the investor has significant influence but does not control the company outright.

Consolidation Process

The method of combining the financial statements of a parent company with those of its subsidiaries to present as one entity.

Net Income

Net income is the total amount of profit a company makes after all expenses, taxes, and costs have been subtracted from its total revenue.

Equity Method

An accounting technique used to record investments in other companies where the investor has significant influence but not full control, typically between 20% and 50% ownership.