Day: April 19, 2021

A company’s debtors total £42,000 when the debtors’ days are 40.

 The company budgets in the coming year for a 30% increase in turnover and debtors’ days reduced to 30.

What will the budgeted debtors be at the year end?

Select ONE answer:

1. £24,231
2. £31,500
3. £40,950
4. £43,077

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 3

1. Not correct
2. Not correct
3. Correct ==> £42,000 / 40 = £1,050 * 1.3 * 30 ==> £40,950
4. Not correct

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