Question : Which of the following statements is false with respect to trade receivable turnover ratio?
Option 1: Trade Receivables include Debtors and Bills Receivable.
Option 2: Average trade receivables are calculated by adding the trade receivables at the beginning of a period as well as at the end of the period and by dividing the total by 2.
Option 3: While calculating this ratio, provision for bad and doubtful debts is not deducted from trade receivables.
Option 4: None of the above.
Correct Answer: None of the above.
Solution : Answer = None of the above.
All statements regarding the Trade receivable turnover Ratio are correct.
Trade receivable turnover ratio = $\frac{\text{Net Credit Sales}}{\text {Average Trade Receivable}}$
Hence, the correct option is 4.
Question : ------------------- ratio indicates the relationship between credit revenue from Operations and average trade receivables during the year.
Question : Which ratio would be get by dividing net credit sales by the average debtors?
Question : A firm made credit Revenue from Operations (Credit Sales) of Rs.5,40,000 during the year. If the trade receivables turnover ratio is 9 times, The value of opening and closing trade Receivables, if the closing trade receivables are more by Rs.8,000 than the opening trade
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