A-LevelAccountingAnalysis and Interpretation of Financial Statements (Liquidity Ratios)May/June 2017Paper 1 Q201 Mark
The following financial information is available for a business. All purchases and sales are made on credit. $ purchases 121980 revenue 209 980 trade payables 45448 trade receivables 28 765 What is the average collection period?
A50 days
B79 days
C86 days
D136 days
✓ Correct Answer
The correct answer is A. This question tests the candidate's understanding of analysis and interpretation of financial statements (liquidity ratios) within the Accountingsyllabus. The examiner's mark scheme requires...
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
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