📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    Question

    ABC Ltd has made purchases of Rs.100,000 during the

    year. The balance sheet shows an average accounts payable balance of Rs12,000. ABC Ltd payable payment period is closest to:
    A 37 days Correct Answer Incorrect Answer
    B 44 days Correct Answer Incorrect Answer
    C 52 days Correct Answer Incorrect Answer
    D 45 days Correct Answer Incorrect Answer
    E 25 days Correct Answer Incorrect Answer

    Solution

               Payables Turnover = Purchases/ average payables = 100000/12000             8.33             Payables payment period = 365/8.33 = 43.8 ~ 44 days

    Practice Next
    More Alternate Sources of Finance Questions
    ask-question