Define Number of days of payables
Introduction:
Account payable is nothing but a debt owed to a single borrower when purchasing products or services without paying cash in advance or immediately, it means buying goods on credit basis.
Answer:
The days payable outstanding (DPO) is nothing but a financial calculation that measures the total length of time a business requires to pay the bills and accounts to other firms and suppliers by contrasting the accounts payable, number of days billing remaining unpaid and cost of sales.
It is also refers to the total number of days a company will expect to pay its liabilities due. Days unpaid also remaining determines how well a business handles its accounts unpaid.
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