Accounting Multiple Choice Question – 14 May 2022

Which ratio calculates the average time a business takes to pay its credit suppliers?

Select ONE answer:

1. current ratio
2. liquid (acid test) ratio
3. trade payables days
4. trade receivables 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 3

1. Not correct
2. Not correct
3. Correct
4. Not correct

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