The number of days' spayable uncollected is determined by dividing
A)the number of days in a year by the payables turnover.
B)the number of days in a year by average accounts payable.
C)cost of goods sold by average accounts payable.
D)inventory by average accounts payable.

Question

Quizplus · Accepted Answer

The number of days' payable uncollected is determined by dividing the number of days in a year by the payables turnover. This metric helps businesses understand how long, on average, they take to pay their suppliers.

The Number of Days' Spayable Uncollected Is Determined by Dividing