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

Reasons for why ordinary share capital is attractive, Reasons for why Ordin...

Reasons for why Ordinary Share Capital is Attractive Reasons for why ordinary share capital is attractive despite to be risky Shares are used as securities for loans as

NPV, purchase a machine worth Shs.1,500,000 which will have a residue value...

purchase a machine worth Shs.1,500,000 which will have a residue value Shs.200,000 after 5 years useful life. The saving in cost resulting from the use of this machine are: Sh

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

Advantage and disadvantage of sole proprietorship, Advantage and Disadvanta...

Advantage and Disadvantage of Sole Proprietorship Advantage of Sole Proprietorship High supervision of employees Income motivate owner Sole trade mostly ski

Example of theoretical value, Example of Theoretical Value As a result...

Example of Theoretical Value As a result of the purchase of an asset, the income stream will rise by of £1,000 per annum for 25 years.  By assuming a discount rate of 20 perce

Shareholders - measuring business performance, Shareholders - Measuring Bus...

Shareholders - Measuring Business Performance Shareholders Actual owners are interested in the company's both short and long term survival.  For this cause they will need

Solutions - relationship between auditors and shareholders, Solutions to th...

Solutions to the conflict - Relationship between Auditors and Shareholders 1. Firing The auditors may be detached from office at the AGM via the shareholders. 2. Lega

Social responsibility - objectives of business entity, Social responsibilit...

Social responsibility - Objectives of Business Entity The firm must decide where to operate strictly in their shareholders' best interests or be responsible to their staff, th

Challenges to finance manager., Ask question #Minimum what are the challeng...

Ask question #Minimum what are the challenges that a finance manager may face?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd