An increase in days payable outstanding,all other things equal,would ___________ the cash conversion period and reflect ________________ liquidity.

Question

Quizplus · Accepted Answer

An increase in days payable outstanding means a company is taking longer to pay its suppliers, which effectively extends its cash on hand, thus decreasing the cash conversion period (since it's holding onto cash longer) and reflecting increased liquidity (as it has more cash available for use in the short term).

An Increase in Days Payable Outstanding,all Other Things Equal,would ___________