Accounting 0452 · IGCSE · Interpretation of accounting ratios

Interpretation of accounting ratios — practice question

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

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI