Days' Payables Outstanding (DPO), Which Tells How Long a Company

question 26

True/False

Days' payables outstanding (DPO), which tells how long a company takes to pay off its suppliers for the cost of inventory, is used to measure the operating cycle.

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Definitions:

Microevolution

Evolutionary changes within a species or small group of organisms, particularly over a short period.

Genetic Changes

Alterations in the DNA sequence of an organism, which can affect its characteristics or behavior.

Population

The total number of individuals or organisms residing within a particular area or habitat.

Natural Selection

The process by which organisms better adapted to their environment tend to survive and produce more offspring, driving evolution.