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

---

Definitions:

Stipulative Definition

A definition that is specified by someone and may not universally apply beyond the context it is defined in.

Occupational Safety

The discipline concerned with preventing work-related injuries, illnesses, and fatalities by identifying and controlling hazards in the workplace.

Standards Organizations

Bodies responsible for developing, coordinating, and promoting technical standards to ensure quality, safety, and interoperability of products and services.

Toy Airplane

A miniature representation of an airplane, designed as a toy for children to play with, often mimicking the design and features of real aircraft.