If Accounts Payable Is $1,116 and Cost of Goods Sold

question 25

Multiple Choice

If accounts payable is $1,116 and cost of goods sold is $11,315,what is days' payable outstanding?

• A)30 days
• B)45 days
• C)36 days
• D)33 days
• E)40 days

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Definitions:

Budget

A financial plan that estimates income and expenditures for a future period, often used as a guide for financial decision-making and resource allocation.

Budgetary Control Process

A method for managers to set financial and operational goals with budgets, monitor performance, and take corrective actions to stay on track with objectives.

Budget

An estimate of income and expenditure for a set period of time, serving as a financial plan and control method.

Budgeted Balance Sheet

A budgeted balance sheet forecasts a company's financial position at the end of a future period, projecting assets, liabilities, and equity.