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

Analysis and communication of accounting information — practice question

A business has the following financial data. Every purchase and sale is carried out on credit. Purchases $121980$. Revenue $209980$. Trade payables $45448$. Trade receivables $28765$. What is the average collection period?

  • A50 days
  • B79 days
  • C86 days
  • D136 days

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