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Which of the following ratio establishes the relationship between 'Credit revenue from operations' and "Trade receivables"? - Accountancy

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Question

Which of the following ratio establishes the relationship between 'Credit revenue from operations' and "Trade receivables"?

Options

  • Inventory Turnover Ratio

  • Interest Coverage Ratio

  • Trade Payables Turnover Ratio

  • Trade Receivables Turnover Ratio

MCQ

Solution

Trade Receivables Turnover Ratio

Explanation:

Trade Receivables Turnover Ratio = `"Net Credit Revenue from Operation"/"Average Trade Revenue"`

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2021-2022 (December) Term 1
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