Financial Accounting
What is a potential disadvantage of a high DPO?
What does Days Payable Outstanding (DPO) measure in financial analysis?
A small business has a DPO of 20 days, while the industry average is 45 days. What might this indicate about the business's operations?
If a company has a COGS of \$750,000 and an average accounts payable of \$150,000, what is the AP Turnover?
How might a high DPO be disadvantageous for a small supplier?
How do industry-specific credit terms affect a company's DPO?
Which of the following best describes the significance of DPO in financial analysis?
What might a significantly higher DPO than industry benchmarks indicate?
Why is it important to compare a company's DPO with industry benchmarks?
A large corporation has a DPO of 90 days, while the industry average is 60 days. What might this indicate about the corporation's operations?
