A "normal" value for days payable outstanding might be?

Question

Quizplus · Accepted Answer

Days payable outstanding is a measure of how long it takes a company to pay its creditors. A "normal" value for days payable outstanding can vary depending on the industry and company, but typically ranges from 30 to 90 days. Therefore, option D, with a value of 30, is the most reasonable and commonly accepted answer. Options A, B, and C are too low and would indicate that the company is paying its bills too quickly, which could potentially hurt cash flow and relationships with suppliers.

A "Normal" Value for Days Payable Outstanding Might Be