A Company Has Days' Payable Outstanding of 70 Days

question 30

Multiple Choice

A company has days' payable outstanding of 70 days. If credit terms of purchases are 2/10, net 30, is the company paying accounts payable on a timely basis?

• A)Yes, days' payable outstanding exceeds the net period of 30 days.
• B)Yes, days' payable outstanding exceeds the discount period of 10 days and the net period of 30 days.
• C)No, days' payable outstanding exceeds the discount period of 10 days and the net period of 30 days.
• D)There is not enough information to make an assessment.

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Definitions:

Local School

An educational institution typically serving the children in the surrounding community or locality.

Encirclement

A strategy or situation in which a force or entity is surrounded or hemmed in on all sides, often used in military contexts or to describe comprehensive support systems in healthcare or social services.

External Conditions

The surrounding environment or circumstances that influence or impact an individual's or system's behavior, actions, or development.

Whole Environment

A term that refers to the total surrounding conditions and elements in which an organism or object operates.