Accounting Multiple Choice Question – 15 July 2021

The following relates to a business. 

• debtor’s collection period  —  26 days
• creditor’s payment period  —  34 days
• rate of stock turnover  —  33 days

What is the business’s working capital cycle? 

Select ONE answer:

1. 25 days
2. 27 days
3. 59 days
4. 93 days

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 ==> 26 +33 – 34
2. Not correct
3. Not correct
4. Not correct

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