The Trade Payables Turnover Ratio Shows How Quickly Management Is

question 32

True/False

The trade payables turnover ratio shows how quickly management is paying its trade creditors and is considered to be a measure of liquidity.

---

Definitions:

Decision-making

The cognitive process of selecting a course of action from among multiple alternatives.

Preconventional

A stage in moral development where individuals' moral reasoning is based primarily on the consequences of their actions to themselves.

Stage of Morality

Refers to levels of moral development individuals go through as they progress in making ethical decisions.

Self-interest

The focus on one's own advantage and well-being without necessarily considering the impact on others.