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Question

Average trade receivables =


A

Closing Debtors and Bills Receivable2

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B

(Opening Debtors and Bills Receivable + Closing Debtors and Bills Receivable)2

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C

Opening Debtors and Bills Receivable2

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D

None of these

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Solution

The correct option is B

(Opening Debtors and Bills Receivable + Closing Debtors and Bills Receivable)2


Trade Receivables Turnover Ratio=(Opening Debtors and Bills Receivable + Closing Debtors and Bills Receivable)2


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