Question : The Trade Receivables turnover ratio can also be converted into the number of days within which the cash is collected from trade receivables called___________

Option 1: Average age of payment

Option 2: Debt collection period

Option 3: Trade receivable at the end of the year

Option 4: None of the above

Question : Trade Payables Turnover Ratio could be converted into_______________which indicates the period which is normally taken by the firm to make payment to its trade payable

Option 1: Debt collection period

Option 2: Average collection period

Option 3: Average age of payments

Option 4: None of the above

Question : Trade Payables Turnover Ratio could be converted into_______________which indicates the period which is normally taken by the firm to make payment to its trade payable

Option 1: Debt collection period

Option 2: Average collection period

Option 3: Average age of payments

Option 4: None of the above

Question : Which of the following statements is false with respect to trade receivable turnover ratio?

Option 1: Trade Receivables include Debtors and Bills Receivable.

Option 2: Average trade receivables are  calculated by adding the trade receivables at the beginning of a period as well as at the end  of the period and by dividing the total by 2.

Option 3: While calculating this ratio, provision for bad and doubtful debts is not deducted from trade receivables.

Option 4: None of the above.

Question : Which of the following statements is false with respect to trade receivable turnover ratio?

Option 1: Trade Receivables include Debtors and Bills Receivable.

Option 2: Average trade receivables are  calculated by adding the trade receivables at the beginning of a period as well as at the end  of the period and by dividing the total by 2.

Option 3: While calculating this ratio, provision for bad and doubtful debts is not deducted from trade receivables.

Option 4: None of the above.