A-LevelAccountingAnalysis and Interpretation of Financial StatementsOct/Nov 2013Paper 1 Q231 Mark
The trade receivables turnover for a company was 100 days in 2011. This reduced to 80 days in 2012, with no change in the sales revenue. Which statement explains this change?
ACredit customers are paying earlier.
BCredit customers are paying later.
CCredit suppliers are being paid earlier.
DCredit suppliers are being paid later.
✓ Correct Answer
The correct answer is A. This question tests the candidate's understanding of analysis and interpretation of financial statements 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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