SOLUTION
There will be no change due to increase in the value of closing inventory by Rs. 50,000 because it will neither affect net credit Revenue from Operations nor average receivables.
The trade receivables turnover ratio of a company is 6 times. State with reasons whether the ratio will improve, decrease or riot change due to increase in the value of closing inventory by Rs. 50,000.
- Post category:Accountancy
- Reading time:1 mins read