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

Analysis and communication of accounting information — practice question

For a business, the data below relate to the year ended 31 December: Revenue: $800\,(\$000)$ Purchases: $600\,(\$000)$ Amount due to credit suppliers: $46\,(\$000)$ Amount due from credit customers: $58\,(\$000)$ $90\%$ of revenue comes from credit sales. $80\%$ of purchases are made on credit terms. What is the trade payables turnover?

  • A$23$ days
  • B$28$ days
  • C$35$ days
  • D$45$ days

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