Day: January 27, 2021

A company’s debtors total £27,000.

There is a collection period of 30 days.

The budget for the coming year provides for an increased turnover of 50 % with the relevant collection period being increased to 60 days.

What will the year-end debtors be?

Select ONE answer:

1. £81,000
2. £54,000
3. £40,500
4. £36,000

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct – £27k *1.5 * 2
2. Not correct
3. Not correct
4. Not correct

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