if-a-companys-accounts-payable-turnover-ratio-is-6-what-does-this-suggest-about-

Question

If a company's accounts payable turnover ratio is 6, what does this suggest about its payment cycle?

Accepted Answer

The company pays its accounts payable every 2 months.

Answer

The company pays its accounts payable every 6 weeks.

Answer

The company pays its accounts payable every 6 days.

Answer

The company pays its accounts payable every 6 months.