Accounts payable turnover ratio, Finance Basics

Assignment Help:

Accounts Payable Turnover Ratio

Ratio for Account Payable Turnover is as Follow:

Creditors/accounts payable turnover = Annual credit purchases /Average creditors

The firm buy goods on credit from suppliers.
The ratio signify number of times p.a. the firm bought goods upon credit after paying the suppliers.
If the creditors turnover is high, this signifies such the payment was made
Contained via a short period of time.

Related Discussions:- Accounts payable turnover ratio

Credit standards, Credit Standards A firm may follow a stringent or a ...

Credit Standards A firm may follow a stringent or a lenient credit policy. The firm subsequent of a lenient credit policy tends to sell on credit to customers on extremely lib

Motgage Broker Assgnment, ollowing a personal introduction, and before you ...

ollowing a personal introduction, and before you begin gathering information about the clients’ existing financial situation or needs, there are certain disclosures you are require

Forms of business organizations, Forms of Business Organizations The te...

Forms of Business Organizations The term business is wide in meaning. It includes all human activities made for the sake of earning profits through the process of production of

Commercial, wage computation

wage computation

Clientele effect theory, Clientele Effect Theory Advance via Richardso...

Clientele Effect Theory Advance via Richardson Petit in 1977.It stated such different types of groups of shareholders or clientele have different type of preferences for divid

Managing financial resources, Two friends, Alan & Tim just graduated from t...

Two friends, Alan & Tim just graduated from the college. They plan to start their own business, of selling health foods for office workers. They have identified a commercial comple

Example of accounting rate of return method, Example of Accounting Rate of ...

Example of Accounting Rate of Return Method Shs. Project X cost 500,000 Scrap value 100,000 Stream of

Analyse the financial statements, Task The following inform...

Task The following information has been extracted from the accounts of R Ltd., a manufacturer and distributor of home cordless phone in Hong Kong.

Money and banking course, Ask questioSay that a buyer of bonds values good ...

Ask questioSay that a buyer of bonds values good bonds at $500 and values bad bonds at $250. Sellers of both good and bad bonds value them at $350. If the fraction of good sellers

What financial report exactly do, What financial report exactly do? Fin...

What financial report exactly do? Financial reports tell its intended readers about all the financial information of the company for the period it is reporting. It also contain

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages