Lisa rented her goats out to anyone interested in clearing underbrush the natural way on their acreage.She received a call from her client Mary on June 21 and delivered her herd of goats to the site on June 24.The goats were done on June 30 and Lisa presented Mary with an invoice the same day.Mary wrote Lisa a check on July 18 and Lisa cashed it on July 21.What was Lisa's days payable outstanding for Mary's job?
A)18 days
B)24 days
C)27 days
D)30 days

Question

Quizplus · Accepted Answer

Days Payable Outstanding (DPO) is calculated from the time an invoice is issued until the payment is made. Lisa issued the invoice on June 30 and Mary made the payment on July 18. Therefore, the DPO is from June 30 to July 18, which is 18 days.

Lisa Rented Her Goats Out to Anyone Interested in Clearing