Asked by Ericka Pearce on Jul 05, 2024
Verified
Days' payable outstanding measures how long,on average,a company takes to pay its creditors.
Days' Payable Outstanding
A financial ratio that indicates the average time (in days) that a company takes to pay its suppliers and creditors.
- Understand how days' payable outstanding is calculated and interpreted.
Verified Answer
NG
Nicolette GutierrezJul 06, 2024
Final Answer :
True
Explanation :
Days' payable outstanding is a metric used to measure the average number of days a company takes to pay its creditors.
Learning Objectives
- Understand how days' payable outstanding is calculated and interpreted.