1.

From the information given below, calculate Trade Receivables Turnover Ratio:Credit Revenue from Operations, i.e., Credit Sales ₹8,00,000; Opening Trade Receivables ₹1,20,000; and Closing Trade Receivables ₹2,00,000.State giving reason, which of the following would increase, decrease or not change Trade Receivables Turnover Ratio:(i) Collection from Trade Receivables ₹40,000.(ii) Credit Revenue from Operations, i.e., Credit Sales ₹80,000.(iii) Sales Return ₹20,000.(iv) Credit Purchase ₹1,60,000.

Answer» From the information given below, calculate Trade Receivables Turnover Ratio:

Credit Revenue from Operations, i.e., Credit Sales ₹8,00,000; Opening Trade Receivables ₹1,20,000; and Closing Trade Receivables ₹2,00,000.

State giving reason, which of the following would increase, decrease or not change Trade Receivables Turnover Ratio:

(i) Collection from Trade Receivables ₹40,000.

(ii) Credit Revenue from Operations, i.e., Credit Sales ₹80,000.

(iii) Sales Return ₹20,000.

(iv) Credit Purchase ₹1,60,000.


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