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

Analysis and communication of accounting information — practice question

The trade receivables turnover ratio results for two companies are given below. Company X: $45$ days Company Y: $55$ days What can be inferred about Company Y?

  • AIt has higher levels of trade receivables than X.
  • BIt has higher liquidity than X.
  • CIt is less efficient in managing its receivables than X.
  • DIt offers less credit to its customers than X.

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