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WAEC Financial Accounting 2020 Question 20

Question 20

Interpretation of Accounts

Debtors and credit sales for a period are D 120,000 and D 600,000 respectively. The debtor's payment period would be

  1. A.1825 days.
  2. B.365 days.
  3. C.73 days.
  4. D.5 days.
Show the answer and explanation

Answer: C (73 days.)

Explanation

120,000 ÷ 600,000 × 365 = 73 days.