If a Company's Average Payable Period Ratio Is Significantly Lower

question 140

True/False

If a company's average payable period ratio is significantly lower than the credit terms vendors offer, it may be a sign that the company is not using its cash most effectively.

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Definitions:

Vestibule Training

A training method where employees are trained in a separate space (a 'vestibule') using the equipment and tools that they will use in their actual work, but within a simulated work environment.

Work-based Program

An educational or training program that combines work experience with learning activities, often aimed at improving employability.

Big Five Personality

A theory describing five broad dimensions of human personality traits: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Extraversion

A personality dimension referring to an individual's level of sociability, energy, and tendency to seek stimulation in the company of others.