Day: November 13, 2021

The debtor collection period of a business has increased from 55 to 90 days.

Which reason could not account for this?

Select ONE answer:

1. a large bad debt written off
2. a large credit sale made just before the year end
3. a major customer in financial difficulty
4. poor credit control

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
2. Not correct
3. Not correct
4. Not correct

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