Which of the Following Mathematical Equations Is Used to Compute

question 45

Multiple Choice

Which of the following mathematical equations is used to compute the payables deferral period (DPO) ?

• A)Payables deferral period (DPO) = Payables turnover/360
• B)Payables deferral period (DPO) = Payables turnover × 360
• C)Payables deferral period (DPO) = Daily credit purchases/Accounts payable
• D)Payables deferral period (DPO) = Accounts payable/Daily credit purchases
• E)Payables deferral period (DPO) = Cost of goods sold/Accounts payables

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