The accounting ratio used to measure the average number of days for which suppliers remain unpaid is
- stock turnover
-
creditor's payment period
- debtors collection period
- return on capital employed
The correct answer is: B
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.