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What will be the impact of ‘Payment to Trade Payables’ on Trade Payables turnover ratio? State with reason.

  • Post category:Accountancy
  • Reading time:1 mins read

SOLUTION

The ratio will increase because of decrease in Trade Payables.


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Previous PostThe total debtors of X Ltd. were Rs. 9,00,000. It had created a provision of 10% for bad and doubtful debts. What amount of debtors will be used for calculating the ‘Trade Receivables Turnover Ratio’? (C.B.S.E. 2020, Mumbai, Chennai).
Next PostTrade Payables turnover ratio of a Company is 5 times. What will be the impact of ‘Credit purchase’ of Rs. 50,000 on this ratio? State with reason.

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