Home
Class 12
ACCOUNTS
The formula for calculating Trade Payabl...

The formula for calculating Trade Payables Turnover Ratio is :

A

`("Net Credit Purchase")/("Average Creditors")`

B

`("Net Credit Purchase")/("Average Creditors + Average Bills Payable")`

C

`("Cash Purchases")/("Total Creditors")`

D

None of the Above

Text Solution

Verified by Experts

The correct Answer is:
B
Promotional Banner

Topper's Solved these Questions

  • ACCOUNTING RATIOS

    DK GOEL|Exercise Multiple Choice Questions (Profitability Ratios)|13 Videos

  • ACCOUNTING RATIOS

    DK GOEL|Exercise Multiple Choice Questions (Solvency Ratios)|19 Videos

  • ACCOUNTING FOR PARTNERSHIP FIRMS - FUNDAMENTALS

    DK GOEL|Exercise Multiple Choice Questions (viii) Guarantee of Profit to a Partner (HOTS)|13 Videos

  • ACCOUNTING TREATMENT OF GOODWILL

    DK GOEL|Exercise ILLUSTRATION 6.|1 Videos

Similar Questions

Explore conceptually related problems

From the following information, calculate – (i) Trade receivables turnover ratio (ii) Average collection period (iii) Trade rayable turnover ratio (iv) Average payment period Given : {:(,,(Rs.)),("Revenue from Operations",,8_(,)75_(,)000),("Creditors",,90_(,)000),("Bills receivable",,48_(,)000),("Bills payable",,52_(,)000),("Purchases",,4_(,)20_(,)000),("Trade debtors",,59_(,)000):}

From the following information calculate trade receivables tunover ratio:

DK GOEL-ACCOUNTING RATIOS-Multiple Choice Questions (Activity Ratios)
  1. Opening Inventory Rs. 75,000, Closing Inventory Rs. 1,05,000, Inventor...

    Text Solution

    |

  2. Opening Inventory Rs. 40,000, Purchase Rs. 4,00,000, Purchase Return R...

    Text Solution

    |

  3. The formula for calculating the Trade Receivables Turnover Ratio is :

    Text Solution

    |

  4. Total revenue from operations Rs. 9,00,000, Cash revenue from operati...

    Text Solution

    |

  5. Total revenue from operations Rs. 27,00,000, Credit revenue from opera...

    Text Solution

    |

  6. Credit revenue from operations Rs. 24,00,000, Trade Receivables Turnov...

    Text Solution

    |

  7. A firm makes credit revenue from operations of Rs. 2,40,000 during the...

    Text Solution

    |

  8. Credit revenue from operations Rs. 3,00,000. Trade Receivables Tourno...

    Text Solution

    |

  9. Credit revenue from operations Rs. 5,60,000, Debtors Rs. 70,000, B/R R...

    Text Solution

    |

  10. Credit revenue from operations Rs. 6,00,000, Cash revenue from operat...

    Text Solution

    |

  11. On the basis of following data, a Company's closing debtors will be: ...

    Text Solution

    |

  12. Total credit revenue from operations of a firm is Rs. 5,40,000. Averag...

    Text Solution

    |

  13. The formula for calculating Trade Payables Turnover Ratio is :

    Text Solution

    |

  14. Credit Purchases Rs. 12,00,000, Opening Creditors Rs. 2,00,000, Closin...

    Text Solution

    |

  15. Total Purchases Rs. 4,50,000, Cash Purchases Rs. 1,50,000, Creditors R...

    Text Solution

    |

  16. Credit Purchases Rs. 6,00,000, Trade Payables Turnover Ratio 5, Calcul...

    Text Solution

    |

  17. Credit Purchase Rs. 9,60,000, Cash Purchases Rs. 6,40,000, Creditors R...

    Text Solution

    |

  18. Current Assets Rs. 5,00,000, Current Liabilities Rs. 1,00,000, Revenue...

    Text Solution

    |

  19. On the basis of following data, the Working Capital Turnover Ratio of ...

    Text Solution

    |

  20. A firm's current assets are Rs. 3,60,000, current ratio is 3:1. Reven...

    Text Solution

    |