If Trade Creditors at the Beginning of the Period Are

question 39

Multiple Choice

If trade creditors at the beginning of the period are $56 000 and at the end of the period are $68 000,and total credit purchases for the period are $480 000,credit turnover in days is (round your answer up to the next full number of days) :

• A) 13 days.
• B) 52 days.
• C) 43 days.
• D) 48 days.

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Definitions:

Net Operating Income

The profit derived from a company's regular business operations, excluding deductions of interest and taxes.

Sales Territory

A specific geographical area or group of customers assigned to a salesperson or team for the purpose of marketing and selling products or services.

Common Fixed Expenses

Expenses that remain constant in total regardless of changes in the level of activity or volume of output and are shared by more than one segment of a business.

Contribution Margin

Contribution margin is the revenue remaining after subtracting variable costs, used to cover fixed costs and generate profit, highlighting the profitability of individual products.