Managerial Accounting
7th Edition
ISBN: 9781260247886
Author: Wild
Publisher: MCG
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Chapter C, Problem 13QS
To determine
Concept introduction:
Days’ payable outstanding:
Days’ payable outstanding tells about the number of days a company takes to repay its’ creditors. In other words we can say that it shows relationship between accounts payable and cost of goods sold. Low number of days shows that a company is paying creditors quickly but higher the number of days shows that a company is not able to pay creditors quickly.
Days’ payable outstanding.
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