What might a decreasing accounts payable turnover ratio indicate?
A)That the company is paying their bills more slowly.
B)That the company is paying their bills more quickly.
C)That the company is buying more on credit.
D)That the company's liquidity is improving.

Question

Quizplus · Accepted Answer

A decreasing accounts payable turnover ratio indicates that the company is taking longer to pay its bills, which could be a sign of financial stress or inefficiency in managing cash flow.

What Might a Decreasing Accounts Payable Turnover Ratio Indicate