If a Supplier Was Interested in Whether or Not They

question 9

Multiple Choice

If a supplier was interested in whether or not they will be paid on time,which of the calculations would they make?

• A) Trade receivables /sales revenue x 365
• B) Sales revenue/trade receivables x 365
• C) Trade payables/cost of sales x 365
• D) Cost of sales/trade payables x 365

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Definitions:

Deposit

A sum of money placed into a bank account or with a financial institution as a part of a transaction or for safekeeping.

Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment's cost.

Withdraw

The act of removing funds from a bank account or the cessation of investment in a particular asset or undertaking.

Retire

The act of withdrawing from one's position or profession, often marking the end of one's career.