Question

If the company earned revenue from operations of Rs.18 lakh, what is the trade receivables turnover ratio of the company?

A 1 times Correct Answer Incorrect Answer
B 1.25 times Correct Answer Incorrect Answer
C 1.5 times Correct Answer Incorrect Answer
D 2 times Correct Answer Incorrect Answer
E None of these Correct Answer Incorrect Answer

Solution

Trade Receivables turnover ratio = net revenue/trade receiavbles                                                             =18,00,000/ 9,00,000                                                             = 2 times

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