Which of the following is the correct accounts payable turnover calculation?
A) Inventory Turnover / 365
B) Inventory / Accounts Payable
C) Purchases / Accounts Payable
D) Accounts Payable /Purchases
E) Accounts Payable / Average Days' Purchases

Question

Quizplus · Accepted Answer

The correct formula for accounts payable turnover is Purchases divided by Accounts Payable. This ratio measures how quickly a company pays off its suppliers.

Which of the Following Is the Correct Accounts Payable Turnover