A. stock turnover
B. creditor’s payment period
C. debtors collection period
D. return on capital employed
Correct Answer: Option B
B. creditor’s payment period
Explanation
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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