Accounting Multiple Choice Question – 18 January 2023

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Accounting
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During the year ended 31 March 2016, Alex plc made sales of £560,000 of which 25% were for cash.

The trade receivables at 31 March 2015 were £52,000 and at 31 March 2016 they were £56,000.

What is the Trade Receivables Days collection period based on the average receivables of the two year-ends?

Select ONE answer:

  1. 34 days
  2. 35 days
  3. 47 days
  4. 49 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 = = > (52 + 56) / 2) = £54k average debtors / (£560k * 75%) * 365 days
  4. Not correct

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Author: stuart001uk2014

Referral marketing, business, economics and accounting s​pecialist & corporate mentor

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