Home › Bihar Board Class 12 (Commerce) › Accountancy › Analysis of Financial Statements: Tools and Accounting Ratios › A low trade payables turnover may indicate what?
A low trade payables turnover may indicate what?
ADelayed payment to suppliers
BFast payment to suppliers
COnly cash purchases
DA large cash balance
Answer & Solution
Correct answer: A. Delayed payment to suppliers
A low ratio can mean long credit from suppliers or late payment, which may hurt reputation.
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