A low accounts payable to net sales ratio may indicate that a firm's suppliers grant liberal credit terms.

Name: A low accounts payable to net sales ratio may indicate that a firm's suppliers grant liberal credit terms.
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Question

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A low accounts payable to net sales ratio indicates that the firm is paying off its suppliers relatively quickly, which may suggest that the suppliers are not granting liberal credit terms but instead require prompt payment.

A Low Accounts Payable to Net Sales Ratio May Indicate