To Find the Days' Payable

question 93

Multiple Choice

To find the days' payable,

• A)divide 365 by the payables turnover.
• B)multiply the payables turnover by 365.
• C)divide the payables turnover by 365.
• D)subtract 365 from the payables turnover.

---

Definitions:

Personal Taxes

Taxes levied on the income or assets of individuals, as opposed to taxes imposed on companies.

Corporate Debt

Financial obligations incurred by companies through borrowing, issuing bonds, or other financial instruments to support operations or growth.

Financial Leverage

The use of borrowed money (debt) to amplify the potential returns from an investment, increasing risk and potentially reward.

Financial Distress

A condition in which a company cannot generate the revenues or income necessary to meet its financial obligations, which may lead to bankruptcy.