An Accounts Payable Turnover Ratio of 12 Indicates That a Company

question 98

True/False

An accounts payable turnover ratio of 12 indicates that a company takes approximately 30 days,on average,to pay its suppliers.

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Definitions:

Checking

The process of verifying or inspecting items, details, or operations to ensure they meet required standards or are correctly executed.

Bagging

A machine learning ensemble technique that improves the stability and accuracy of algorithms by combining multiple models.

Standard Time

The predetermined amount of time that should be taken to complete a job or task under normal working conditions.

Allowance

A planned amount of time or cost added to an estimate to account for uncertainties, or an amount of money given at regular intervals for a specific purpose.