The payable turnover is equal to 6, what is the average payment period?Select one:a.6 daysb.70 daysc.60 daysd.1/6 day

Break Down the Problem

1. We need to find the average payment period (APP) given the payable turnover ratio.
2. The formula relating these two concepts is: $\text{Payables Turnover} = \frac{365}{\text{Average Payment Period (APP)}}$

Relevant Concepts

1. Given that the payable turnover is equal to 6, we can rewrite the formula: $6 = \frac{365}{\text{APP}}$
2. We can rearrange this to solve for the APP.

Analysis and Detail

1. Rearranging the equation gives: $\text{APP} = \frac{365}{6}$
2. Performing the calculation: $\text{APP} = 60.83 \text{ days (approximately)}$

Verify and Summarize

1. To verify, we can substitute APP back into the equation to check if we get the correct turnover: $\text{Payable Turnover} = \frac{365}{60.83} \approx 6$
2. Since the calculated APP approximately equals 60.83 days, it is reasonable to round to the nearest whole number.

Final Answer

The average payment period (APP) is approximately 60 days (option c).