A Business with a Payables Turnover Ratio of 10

question 41

Multiple Choice

A business with a payables turnover ratio of 10.4 times a year would have an average payable period of about:

• A) 3 days.
• B) 30 days.
• C) 35 days.
• D) 62 days.

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Definitions:

Quotas

Regulatory measures imposing limits on the amount or value of goods that can be traded, typically used in international trade.

Export Subsidies

Government payments made to domestic firms to encourage exports.

Tariff

A tax imposed on imported goods and services to increase their price, intended to protect domestic industries and adjust trade deficits.

Tax

A mandatory financial charge or levy imposed by a government on individuals or entities to fund public services and projects.