Accounting 0452 · IGCSE · Calculation and understanding of accounting ratios

Calculation and understanding of accounting ratios — practice question

A trader gave the information below for the year ending 31 December. Total cash and credit purchases of goods for resale $150\,000$; cash purchases of goods for resale $17\,000$; credit purchases of non-current assets $25\,000$. At that date, his trade payables stood at $8\,000$. Calculate the trade payables turnover.

  • A17 days
  • B20 days
  • C22 days
  • D24 days

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