Which of the following statement is true ? Answer choices : I. Increase in collection of cash from customer will lead to decrease in days of payable outstanding . II . Increase in credit sales of the company will lead to increase in days of payable outstanding . III . Decrease in average accounts payable will cause decrease in accounts payable turnover ratio . IV . All the above statements are false .
Which of the following statement is true ? Answer choices : I. Increase in collection of cash from customer will lead to decrease in days of payable outstanding . II . Increase in credit sales of the company will lead to increase in days of payable outstanding . III . Decrease in average accounts payable will cause decrease in accounts payable turnover ratio . IV . All the above statements are false .
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 11MC: Which of the following best represents a positive product of a lower number of days sales in...
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Question
Which of the following statement is true ?
Answer choices :
I. Increase in collection of cash from customer will lead to decrease in days of payable outstanding .
II . Increase in credit sales of the company will lead to increase in days of payable outstanding .
III . Decrease in average accounts payable will cause decrease in accounts payable turnover ratio .
IV . All the above statements are false .
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