A-LevelAccountingAnalysis and communication of accounting information9706/12 · May/June 2021 · Q181 Mark
The trade receivables turnover ratio figures for two companies are shown. company turnover in days X 45 Y 55 What does this indicate about company Y?
AIt has higher levels of trade receivables than X.
BIt has higher liquidity than X.
CIt is less efficient in managing its receivables than X.
DIt offers less credit to its customers than X.
✓ Correct answer
C: It is less efficient in managing its receivables than X.
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.
Sign up free →