Home › BBA Finance › Financial Management › Working Capital Management › The average number of days a company takes to pa…
The average number of days a company takes to pay its suppliers is the:
APayables deposit period
BPayables deferral period
CPayables delivery period
DPayables discount period
Answer & Solution
Correct answer: B. Payables deferral period
1. It is also called days in payables.
2. Suppliers wait that long.
3. It is the payables deferral period.
_Source: OpenStax Principles of Finance 2e, Chapter 19, The Importance of Working Capital._
Related questions
Excess cash invested in cash alternatives is said to create:Because payments for purchases are usually made on credit, cash outflows in a month often Assets that turn into cash within a year through normal operations are contrasted with capCash held by a business is needed above all to pay the bills and meet the:Credit taken from suppliers, recorded as accounts payable, is called:Better inventory management, better collections and longer supplier terms together will:Working capital needs that stay in place all year round are described as:Working capital needs that rise and fall with the season are described as: