A-LevelAccountingAnalysis and communication of accounting information9706/12 · Oct/Nov 2011 · Q221 Mark

Which ratio measures a business' average payment period?

Acurrent ratio

Bliquid ratio

Ctrade payables turnover

Dtrade receivables turnover

✓ Correct answer

C: trade payables turnover

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Topic: Analysis and communication of accounting information, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Oct/Nov 2011 Paper 1 Variant 2, question 22.

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