In the tenant-improvement file, accounts payable is $45,000 and average daily purchases are $1,500. What is days payable outstanding?
Correct Answer
B) 30 days.
DPO is payables divided by average daily purchases: $45,000 / $1,500 = 30 days.
Why This Is the Correct Answer
DPO is payables divided by average daily purchases: $45,000 / $1,500 = 30 days.
Why the Other Options Are Wrong
Option A: 25 days.
25 days. is below the supported result for accounts payable aging; it likely uses the wrong base, period, or account bucket.
Option C: 35 days.
35 days. is above the supported result for accounts payable aging; it likely adds an unsupported amount or compares the wrong financial base.
Option D: 45 days.
45 days. is above the supported result for accounts payable aging; it likely adds an unsupported amount or compares the wrong financial base.
Memory Technique
Dpo and payables live in different drawers; Checking Vendor tells which opens.
Reference Hint
Study anchor (closed-book): memorize Accounts payable aging from CSLB Law and Business Study Guide; CSLB 2026 Law Book / CSLB Law and Business Study Guide Business Finances; know the rule or calculation trigger without relying on exam-room lookup.
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