A-LevelAccountingAnalysis and communication of accounting information9706/12 · May/June 2013 · Q211 Mark

A company had a trade receivables collection period of 80 days in 2011 and 100 days in 2012. Total revenue was the same for both years. Which statement explains the change?

ACustomers took advantage of cash discounts.

BProfit margins have improved.

CSeveral major customers suffered cash flow problems.

DThe company entered into a debt factoring arrangement.

✓ Correct answer

C: Several major customers suffered cash flow problems.

Practise more questions on this topic

Oracle Prep sorts past-paper questions by topic, so you can drill Analysis and communication of accounting information and see which topics are most likely to come up next.

About this question

Topic: Analysis and communication of accounting information, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2013 Paper 1 Variant 2, question 21.

Questions and mark schemes are from past examination papers and remain the copyright of the exam board. How Oracle Prep builds its content

A company had a trade receivables collection period of 80 days in 2011 and 100 days in 2012. Total revenue was the same for both years. Which statement explains the change?

✓ Correct answer

Practise more questions on this topic

About this question

Related Accounting questions