An increase in A/P turnover year over year
A)is due to increased payments to suppliers.
B)increases the number of days accounts payable are outstanding.
C)increases expenses.
D)is meaningless without comparative data.

Question

Quizplus · Accepted Answer

An increase in A/P turnover year over year means that a company is paying its suppliers more frequently, which results in a higher turnover ratio. This shows increased efficiency in managing its accounts payable.

An Increase in A/P Turnover Year Over Year