6 Views

Question : 12,00,000 in credit sales and 2,40,000 in debts were owed by ABC Ltd. at the conclusion of the year. With a year of 360 days,what will be the average collection period?

Option 1: 180 Days

Option 2: 60 Days

Option 3: 80 Days

Option 4: 72 Days


Team Careers360 4th Jan, 2024
Answer (1)
Team Careers360 14th Jan, 2024

Correct Answer: 72 Days


Solution : Average Collection Period =  Debtors / Credit Sales  × 360
= 2,40,000 /1 2,00,000 × 360
= 72 days
Hence option 4 is the correct answer.

Related Questions

Great Lakes PGPM & PGDM 2025
Apply
Admissions Open | Globally Recognized by AACSB (US) & AMBA (UK) | 17.3 LPA Avg. CTC for PGPM 2024 | Application Deadline: 1st Dec 2024
ISBR Business School PGDM Adm...
Apply
180+ Companies | Highest CTC 15 LPA | Average CTC 8 LPA | Ranked as Platinum Institute by AICTE for 6 years in a row | Awarded Best Business School...
ICFAI Business School-IBSAT 2024
Apply
9 IBS Campuses | Scholarships Worth Rs 10 CR
Asia Pacific Institute of Man...
Apply
8.11 LPA-Average Package | 1200+ Recruiters
Parul University BBA Admissio...
Apply
India's youngest NAAC A++ accredited University | NIRF rank band 151-200 | 2200 Recruiters | 45.98 Lakhs Highest Package
JIMS Rohini PGDM Admissions 2025
Apply
Highest CTC 24 LPA | Average CTC 8.30 LPA | Median CTC 8.80 LPA
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books