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If the Days Debtors Ratio Changes from 32 Days to 38

Question 24

Multiple Choice

If the days debtors ratio changes from 32 days to 38 days this indicates that:


A) the entity is becoming more efficient at collecting money from trade debtors.
B) the time taken to collect money from trade debtors is increasing.
C) the time taken to sell inventory is increasing.
D) the time taken to pay suppliers of inventory is increasing.

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