Trade Receivables Turnover ratio =

Net Credit Revenue from Operations/Average Trade Receivable

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Revenue from Operations/Trade Receivable

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Net Credit Revenue from Operations/Average Trade payables

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None of these

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Solution

The correct option is A
Net Credit Revenue from Operations/Average Trade Receivable

Trade Receivables Turnover Ratio = Net Credit Revenue from Operations/Average Trade Receivable

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Similar questions

	31st March, 2018(₹)	31st March, 2019(₹)
Revenue from Operations (Net Sales)	8,00,000	7,00,000
Debtors in the beginning of year	83,000	1,17,000
Debtors at the end of year	1,17,000	83,000
Sales Return	1,00,000	50,000

The following Balance Sheet and other information, calculate following ratios:

(i) Debt-Equity Ratio (ii) Working Capital Turnover Ratio (iii) Trade Receivables Turnover Ratio

Additional Information: Revenue from Operations Rs. 18,00,000 Calculate:

ii) Working Capital Turnover Ratio

(Debt-Equity Ratio 0.63:1; Working Capital Turnover Ratio 1.39 times; Trade Receivables Turnover Ratio 2 times)

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