Accounting 0452 · IGCSE · Calculation and understanding of accounting ratios

Calculation and understanding of accounting ratios — practice question

A trader is thinking about supplying goods on credit to a new customer. What might be worked out from the customer’s financial statements to show the usual length of time taken to pay for goods bought on credit?

  • Acurrent ratio
  • Bliquid (acid test) ratio
  • Ctrade payables turnover
  • Dtrade receivables turnover

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