• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for March and June 2025 exams.
Get your discount code >>

Trade payables payment period

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Trade payables payment period

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • January 24, 2021 at 6:55 am #607718
    applessauce
    Member
    • Topics: 85
    • Replies: 65
    • ☆☆

    Which of the following is likely to reduce the trade payables payment period?

    A Paying trade suppliers within seven days of reciept of invoice to obtain a discount

    B Buying an increasing volume of credit purchases during an accounting period

    Sir the correct answer was A
    I was wondering why isn’t B the answer because in the formula for trade payable period it is.
    (trade payables/credit purchases )*365

    so if credit purchases changes then trade payable period also could change right???

    January 24, 2021 at 10:39 am #607748
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54657
    • ☆☆☆☆☆

    B is wrong because if they buy more then they will be owing more. It doesn’t affect how long they take to pay their suppliers, which is what the payables payment period is measuring.

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • AKN1989 on Linear Programming – Maximum contribution – ACCA Performance Management (PM)
  • Motsotase910 on Contingent Assets and Liabilities – ACCA Audit and Assurance (AA)
  • Kim Smith on ACCA F2 Key to success
  • Barlow1989 on CIMA BA2 – The Management Accountant’s Profit Statement – Marginal Costing
  • JocelynChen on The valuation of mergers and acquisitions (part 2) – ACCA (AFM) lectures

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in