When calculating accounts payable turnover,if there is not a material difference between the company's beginning inventory and ending inventory,then the accounts payable turnover will be ________ whether purchases or cost of goods sold are used.
A)similar
B)unavailable
C)drastically different
D)noncomparable

Question

Quizplus · Accepted Answer

Accounts payable turnover is calculated by dividing the total purchases or cost of goods sold by the average accounts payable balance during the period. If there is not a material difference in inventory, it means that the company's purchases and cost of goods sold are approximately equal. Therefore, whether purchases or cost of goods sold are used in the calculation, the accounts payable turnover will be similar.

When Calculating Accounts Payable Turnover,if There Is Not a Material