O-LevelAccountingAnalysis and interpretation7707/12 · May/June 2022 · Q301 Mark

Samuel, a trader, decided to issue statements of account each month. Which ratio does Samuel hope to improve by doing this?

Acurrent ratio

Bliquid (acid test) ratio

Ctrade payables turnover

Dtrade receivables turnover

✓ Correct answer

D: trade receivables turnover

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Topic: Analysis and interpretation, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, May/June 2022 Paper 1 Variant 2, question 30.

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