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 in which to settle their accounts. The business finds it hard to pay its credit suppliers. Which of the following statements are correct?

  • A1 and 2 only
  • B1, 2 and 3
  • C2 and 4
  • D4 only

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