Question : What does Creditors Turnover Ratio take into account:
Option 1: Total credit purchases
Option 2: Total credit sales
Option 3: Total cash purchases
Option 4: Total cash sales
Correct Answer: Total credit purchases
Solution : Accounts Payable Turnover Ratio, Creditors Turnover Ratio, and Trade Payables Turnover Ratio are other names for this metric. This ratio is used to calculate how frequently a company pays its suppliers or Creditors within a certain accounting period.
Hence the correct answer is option 1.
Question : The formula for calculating Trade Payables Turnover Ratio is -
Question : -------------------ratio indicates the relationship between credit purchases and average trade payables during the year.
Question : The gross profit ratio is the ratio of gross profit to ______.
Question : Which ratio would be get by dividing net credit sales by the average debtors?
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