General Studies · Ratio Analysis
Arrange the following analytical steps in the correct sequential order to determine the average credit days (Debtors Collection Period) for a business entity: A. Dividing the constant value of 365 by the turnover figure to arrive at the final days outstanding. B. Determining the total Net Credit Sales for the specific accounting period. C. Calculating the Debtors Turnover ratio by dividing sales by the average receivables. D. Identifying the Average Debtors balance for the corresponding period. Choose the correct answer from the options given below:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1B, D, C, A✓
- 2B, C, D, A
- 3D, B, C, A
- 4C, B, D, A
Correct answer
B, D, C, A
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