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Name: An extract from a business’s Income Statement is given below. The Stat
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Description: An extract from a business’s Income Statement is given below. The Statement of Financial Position shows that trade receivables total £1,125. Given this information, which of the following is the correct trade receivables collection period (trade rece

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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An extract from a business’s Income Statement is given below. The Statement of Financial Position shows that trade receivables total £1,125. Given this information, which of the following is the correct trade receivables collection period (trade receivables days)?

Revenue. 9,125
Cost of sales. 5,840
Gross profit. 3,285

a) 125 days

b) 45 days

c) 30 days

d) 70 days

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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