Home › Bihar Board Class 12 (Commerce) › Accountancy › Analysis of Financial Statements: Tools and Accounting Ratios › Trade receivables turnover is computed from whic…
Trade receivables turnover is computed from which kind of revenue?
ATotal credit purchases
BCash revenue from sales
CNet credit revenue
DGross profit earned
Answer & Solution
Correct answer: C. Net credit revenue
Only credit sales create receivables, so credit revenue is used as the numerator.
Related questions
DuPont analysis multiplies several ratios to give which measure?Which 1934 book by Graham and Dodd is central to fundamental analysis?What makes ratios hard to compare across countries?Ratios are of limited use unless they are what?Which ratio type measures investor response to owning a company's stock?The P/E ratio mainly reflects what?Market price Rs. 96 and EPS Rs. 8. What is the price earning ratio?Dividend per share is Rs. 3 and EPS is Rs. 12. What is the dividend payout ratio?