The Denominator of the Days Payable Outstanding Ratio Can Be

question 51

Multiple Choice

The denominator of the days payable outstanding ratio can be

• A) average daily sales.
• B) average trade accounts payable.
• C) average daily cost of goods sold.
• D) average trade accounts receivable.

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Definitions:

Foreign Corporation

A company that is registered and operates in a country different from the country where it was incorporated, subject to the laws and regulations of the host country.

Insurance

A financial product that transfers the risk of financial loss from an individual or entity to an insurance company in exchange for premium payments.

Treasury Bond

A Treasury bond is a long-term, fixed-interest government debt security issued by the U.S. Treasury Department with a maturity of more than 10 years.

Singapore

An island city-state in Southeast Asia, known for its strong economy, diverse culture, and strict regulations.