U2 Ltd Is Considering Whether to Offer Trade Credit to A1

Multiple Choice

U2 Ltd is considering whether to offer trade credit to A1 Ltd. The ratio from A1's accounts that will be most useful in assessing the firm's ability to repay its trade debts on time is the:

A) gearing.
B) asset turnover period.
C) interest cover.
D) average settlement period for accounts payable.