The accounts payable turnover ratio is equal to divided by average _.
A) debt; total assets
B) long-term debt; common shareholders' equity
C) cost of goods sold; accounts payable
D) debt; common shareholders' equity

Question

Quizplus · Accepted Answer

The accounts payable turnover ratio is calculated by dividing the cost of goods sold by the average balance of accounts payable during a certain time period. Therefore, the correct answer is C, which states that the ratio is equal to the cost of goods sold divided by accounts payable.

The Accounts Payable Turnover Ratio Is Equal to Divided by Average