if-a-companys-accounts-payable-turnover-ratio-is-12-what-does-this-suggest-about

Question

If a company's accounts payable turnover ratio is 12, what does this suggest about its payment cycle?

Accepted Answer

The company pays its accounts payable every month.

Answer

The company pays its accounts payable every 12 weeks.

Answer

The company pays its accounts payable every 12 days.

Answer

The company pays its accounts payable every 12 months.