Question : Read the following information carefully and answer the question
Particulars
Revenue from Operations
8,75,000
Creditors
90,000
Bills Receivable
48,000
Bills Payable
52,000
Purchases
4,20,000
Trade Debtors
59,000
Q. Calculate Average Payment Period.
Option 1: 123 days
Option 2: 121 days
Option 3: 132 days
Option 4: 133 days
Correct Answer: 123 days
Solution : Average Payment Period = 365 Days/Trade Payable Turnover Ratio = 365 Days/2.96 Times (Calculated in Question 6) = 123 Days
Question : Match List-I with List-II.
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile