The accounting ratio used to measure the average number o...
The accounting ratio used to measure the average number of days for which suppliers remain unpaid is
Stock turnover
Creditor's payment period
Debtors collection period
Return on capital employed
Correct answer is B
The Creditor (or payables) days number is a similar ratio to debtor days and it gives an insight into whether a business is taking full advantage of trade credit available to it. Creditor days estimates the average time it takes a business to settle its debts with trade suppliers.
Which of the following is used to service all operations of government? ...
Which of the following is a credit item in an income and expenditure account? ...
A cash payment of ₦85 to Regina was entered in the books as ₦58. The entries to correct the erro...
Where there is no agreement between the partners, the Partnership Act states that ...
Which of the following expenses relate to the profit and loss account of a manufacturing firm? &n...
In a trial balance, income and liabilities are? ...
Discount allowed is enjoyed by ...
A pension granted to any past president or vice-president shall be charged to the? ...