Days' Payable Measures the Relative Size of Accounts Payable

question 162

True/False

Days' payable measures the relative size of accounts payable.

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Definitions:

External Financing

Funds that a company secures from outside sources, such as loans, lines of credit, or the sale of equity, to support its operations and growth.

Financing Need

Refers to the amount of funding required by an entity to carry out its operations, investments, or to cover its expenses.

Equity

The ownership interest in a company, represented by the shares held by investors.

Financial Plans

Detailed strategies outlining how a business will manage its finances to achieve its objectives, including projections for income, expenses, and investments.