Accounting Multiple Choice Question – 21 June 2023

The table shows information for Alex plc at the year end.

• average inventory – £25k
• credit sales – £150k
• credit purchases – £112k
• total purchases – £140k
• trade payables – £28k
• trade receivables – £39k

What is the payment period for trade payables (to the nearest day)?

Select ONE answer:

1. 68 days
2. 73 days
3. 91 days
4. 95 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 – £28k / £112k * 365
4. Not correct

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