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

Analysis and communication of accounting information — practice question

X sells goods on credit. To decide whether to trade with them, he studied the financial statements of two other businesses. He discovered the following details. Business G recorded credit purchases of $21800 and trade payables of $2320. Business H recorded credit purchases of $49500 and trade payables of $5750. X trades only with businesses whose trade payables turnover is 42 days or less. Which business(es) did X choose to trade with?

  • Aboth G and H
  • BG only
  • CH only
  • Dneither G nor H

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