Which of the following statements regarding the accounts payable turnover ratio is not correct?
a. The accounts payable turnover ratio measures how quickly management is paying trade accounts.
b. A high ratio normally suggests that a company is not paying its suppliers in a timely manner.
c. A low ratio would raise questions concerning a company's liquidity.
d. The accounts payable turnover ratio is subject to manipulation.
e. All of the above statements are correct.
Answer: B
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