Which of the following mathematical equations is used to compute the payables deferral period (DPO)?
A. Payables deferral period (DPO) = Payables turnover/360
B. Payables deferral period (DPO) = Payables turnover × 360
C. Payables deferral period (DPO) = Daily credit purchases/Accounts payable
D. Payables deferral period (DPO) = Accounts payable/Daily credit purchases
E. Payables deferral period (DPO) = Cost of goods sold/Accounts payables
Answer: D
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