Which of the following mathematical equations is used to compute the payables deferral period (DPO) ?
A) Payables deferral period (DPO) = Payables turnover/360
B) Payables deferral period (DPO) = Payables turnover × 360
C) Payables deferral period (DPO) = Daily credit purchases/Accounts payable
D) Payables deferral period (DPO) = Accounts payable/Daily credit purchases
E) Payables deferral period (DPO) = Cost of goods sold/Accounts payables
Correct Answer:
Verified
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