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Commerce · Q1033

Financial Management

Graduate and Post Graduate · Commerce · question 1033

Q1033

80% of sales of Rs. 10,00,000 of a firm are on credit. It has a receivable turnover of 8. What is the average collection period (360 days a year) and average debtors of the firm?

A.
45 days and Rs. 1,00,000
Answer
B.
360 days and Rs. 1,00,000
C.
45 days and Rs. 8,00,000
D.
360 days and Rs. 1,25,000

Answer: Option A

Solution

Answer: Option A
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