U2 Ltd is considering whether to offer trade credit to A1 Ltd. The ratio from A1's accounts that will be most useful in assessing the firm's ability to repay its trade debts on time is the: Select one: a.Average settlement period for accounts payable. b.Gearing. c.Asset turnover period. d.Interest cover.

U2 Ltd is considering whether to offer trade credit to A1 Ltd. The ratio from A1's accounts that will be most useful in assessing the firm's ability to repay its trade debts on time is the: Select one: a.Average settlement period for accounts payable. b.Gearing. c.Asset turnover period. d.Interest cover.

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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Question

U2 Ltd is considering whether to offer trade credit to A1 Ltd. The ratio from A1's accounts that will be most useful in assessing the firm's ability to repay its trade debts on time is the:

Select one:

a.Average settlement period for accounts payable.

b.Gearing.

c.Asset turnover period.

d.Interest cover.

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