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If a Company Was Interested in Calculating How Long It

Question 3

Multiple Choice

If a company was interested in calculating how long it takes to receive payment from customers,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

Correct Answer:

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