Days' Payables Outstanding (DPO), Which Tells How Long, on Average

question 7

True/False

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

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Definitions:

Counterproductive

Activities or behaviors that hinder the achievement of a goal or the successful operation of a process.

Cultural Heritage

The traditions, values, and artifacts that are passed down through generations within a culture.

Deinstitutionalization

The process of reducing or eliminating long-term psychiatric care facilities, moving patients to community-based treatments.

Deinstitutionalization

The process of reducing reliance on large, centralized institutions, such as psychiatric hospitals, for the care of individuals with mental illness, favoring community-based services instead.