Average trade payables is the of the opening and closing trade payables.

median

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arithmetic mean

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range

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Solution

The correct option is B arithmetic mean
Average trade payables is the arithmetic mean of the opening and closing trade payables. It is calculated as - (opening trade payables + closing trade payables)/2.

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Similar questions

Calculate Trade Payables Turnover Ratio for the year 2018-19 in each of the alternative cases:
Case 1 : Closing Trade Payables ₹ 45,000; Net Purchases ₹ 3,60,000; Purchases Return ₹ 60,000; Cash Purchases ₹ 90,000.
Case 2 : Opening Trade Payables ₹ 15,000; Closing Trade Payables ₹ 45,000; Net Purchases ₹ 3,60,000.
Case 3 : Closing Trade Payables ₹ 45,000; Net Purchases ₹ 3,60,000.
Case 4 : Closing Trade Payables (including ₹ 25,000 due to a supplier of machinery) ₹ 55,000; Net Credit Purchases ₹ 3,60,000.

Q. Credit purchases are ₹5,50,000 and purchase returns are ₹50,000. What will be the value of average trade payables if trade payables turnover ratio is 5?

[2 marks]

Q. Credit purchases are Rs. 5,50,000 and purchases return are Rs. 50,000. What will be the value of Average Trade Payables if Trade Payables Turnover Ratio is 5?

Q. Trade payables turnover ratio is the ratio of net credit purchases to the average .

Trade payables turnover ratio = ___

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Average trade payables is the of the opening and closing trade payables.

The correct option is B arithmetic meanAverage trade payables is the arithmetic mean of the opening and closing trade payables. It is calculated as - (opening trade payables + closing trade payables)/2.

The correct option is B arithmetic mean
Average trade payables is the arithmetic mean of the opening and closing trade payables. It is calculated as - (opening trade payables + closing trade payables)/2.