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

Question

Quizplus · Accepted Answer

The accounts payable turnover ratio compares the amount of purchases made on credit to the amount of accounts payable. The formula is cost of goods sold divided by average accounts payable. Therefore, the correct answer is D.

The Accounts Payable Turnover Ratio Is Equal to ________ Divided