Skip to main content
Financial Accounting
My Course
Learn
Exam Prep
AI Tutor
Study Guides
Flashcards
Explore
Try the app
My Course
Learn
Exam Prep
AI Tutor
Study Guides
Flashcards
Explore
Try the app
Back
Ratios: Days Payable Outstanding (DPO)
Download worksheet
Problem 1
Problem 2
Problem 3
Problem 4
Problem 5
Problem 6
Problem 7
Problem 8
Problem 9
Problem 10
Ratios: Days Payable Outstanding (DPO)
Download worksheet
Practice
Summary
Previous
5 of 10
Next
14. Financial Statement Analysis / Ratios: Days Payable Outstanding (DPO) / Problem 5
Problem 5
How might a high DPO be disadvantageous for a small supplier?
A
It indicates that the supplier is unable to pay its own suppliers on time.
B
It may strain cash flow as payments from large customers are delayed.
C
It suggests that the supplier has poor relationships with its customers.
D
It means the supplier is likely to face legal action from customers.
AI tutor
0
Show Answer