The accounting ratio used to measure the average number of days for which suppliers remain unpaid is

  • A stock turnover
  • B creditor's payment period
  • C debtors collection period
  • D return on capital employed
waec 2014accounting

The correct answer is B. creditor's payment period

The Creditor (or payables) days number is a similar ratio to debtor days and it gives an insight into whether a business is taking full advantage of trade credit available to it. Creditor days estimates the average time it takes a business to settle its debts with trade suppliers.

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