Days payable outstanding is part of the calculation of cash cycle of the business. The day’s payable outstanding indicates the number of days payables are not paid. A high day’s payable outstanding indicates lower cash cycle of the business. To identify: potential misstatements in the financial statement.

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Chapter 11, Problem 11.24P

To determine

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Days payable outstanding is part of the calculation of cash cycle of the business. The day’s payable outstanding indicates the number of days payables are not paid. A high day’s payable outstanding indicates lower cash cycle of the business.

To identify: potential misstatements in the financial statement.

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