What is the accounts payable turnover?
A)a measure of liquidity
B)a measure of the number of times a year a company is able to pay its accounts payable
C)purchases on account from suppliers divided by average accounts payable
D)all of the above

Question

Quizplus · Accepted Answer

Accounts payable turnover is a measure of liquidity, as it indicates how quickly a company is able to pay its accounts payable. It is also a measure of the number of times a year a company is able to pay its accounts payable, as it is calculated by dividing purchases on account from suppliers by average accounts payable.

What Is the Accounts Payable Turnover