Accounting for IGCSE & O level - Advanced Principles (Section 8 - No. 46)

What is meant by the term 'trade payables period'?
The time it takes for a business to pay its suppliers.
The time it takes for a business to collect cash from its customers.
The average time it takes for a business to convert inventory into cash.
The period of time covered by the financial statements.

Explanation

The trade payables period represents the average time a company takes to settle its obligations to its suppliers.

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