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Question
Answer briefly of the following question :
Mention whether the following Trade Payables are current liabilities or non-current liabilities:
Operating Cycle Expected period of Payment
(a) 12 months 14 months
(b) 15 months 12 months
Solution
(a) Non-current liability 2 marks
(b) Current liability
shaalaa.com
Activity Ratios - Trade Payables Turnover Ratio
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Where are amounts owed by customers for credit purchases found?
Average Payment Period is particularly useful for ______ since it helps in knowing bill- paying patterns of the firm.
Calculate Trade Payables Turnover Ratio (up-to two decimal places) from the following information:
| Particulars | (₹) |
| Trade Payables at the beginning of the year | 70,000 |
| Trade Payables at the end of the year | 80,000 |
| Payment to Trade Payables | 3,20,000 |
| Returns to Credit suppliers | 30,000 |
