Question

Direction (14 -17):-  Study the Balance Sheet below to answer the questions below:

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 1.75 times Correct Answer Incorrect Answer
E 2 times Correct Answer Incorrect Answer

Solution

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

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