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
1 of 10
Next
14. Financial Statement Analysis / Ratios: Days Payable Outstanding (DPO) / Problem 1
Problem 1
What is a potential disadvantage of a high DPO?
A
It indicates that the company is paying its suppliers too quickly.
B
It means the company is not utilizing its credit terms.
C
It suggests that the company has no leverage over its suppliers.
D
It may strain supplier relationships if payments are consistently delayed.
AI tutor
0
Show Answer