Which of the following transactions will decrease the accounts payable turnover ratio?
A)Using cash to pay an accounts payable balance.
B)Selling inventory on account.
C)Selling inventory for cash.
D)A customer returning inventory purchased on account.

Question

Quizplus · Accepted Answer

Accounts payable turnover = Cost of goods sold F1F1F1S1F1F1F10 Average accounts payable; a return of inventory purchased by a customer decreases cost of goods sold.

Which of the Following Transactions Will Decrease the Accounts Payable