Accounting 9706 · AS & A Level · Analysis and communication of accounting information

Analysis and communication of accounting information — practice question

A company’s annual results showed credit sales of $500{,}000. The trade receivables collection period was $73$ days. In the following year, credit sales were forecast to be $550{,}000 and the collection period was expected to remain unchanged. What percentage change is expected in trade receivables?

  • Adecrease of $10\%$
  • Bincrease of $10\%$
  • Cdecrease of $20\%$
  • Dincrease of $20\%$

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