A business has a trade receivables turnover of 42 days. Trade receivables are given 30 days to settle their accounts. The business finds it difficult to pay its credit suppliers. Which statements are right?
- A1 and 2 only
- B1, 2 and 3
- C2 and 4
- D4 only
Accounting 0452 · IGCSE · Interpretation of accounting ratios
A business has a trade receivables turnover of 42 days. Trade receivables are given 30 days to settle their accounts. The business finds it difficult to pay its credit suppliers. Which statements are right?