A Business with a Payables Turnover Ratio of 10

question 21

Multiple Choice

A business with a payables turnover ratio of 10.4 times a year would have an average payable period of about ________ days.

• A)3
• B)30
• C)35
• D)62

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Definitions:

Stock Dividend

A dividend payment made in the form of additional shares rather than a cash payout, increasing the total number of shares owned by shareholders.

Clientele Effect

Stocks attract particular groups based on dividend yield and the resulting tax effects.

Demand

The desire of purchasers, consumers, clients, or buyers for a product or service, combined with their willingness and ability to pay for it.

Dividend Payout

The portion of a company's earnings distributed to shareholders in the form of dividends.