Based on Case Study 1, what is the Trade Payables Turnover Ratio? - Accountancy MCQ CUET Accountancy 2025 13 May Shift 2 2026 | ExamTest.live | ExamTest.live

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Based on Case Study 1, what is the Trade Payables Turnover Ratio?

A $2.86 times$
B $2.96 times$
C $2.56 times$
D $2.16 times$

Solution & Step-by-step Explanation

Let's calculate the ratio using the relevant formulas: Trade Payables = Creditors + Bills Payable = 90, 000 + 52, 000 = Rs. 1, 42, 000 Trade Payables Turnover Ratio = \frac{Net Purchases}{Trade Payables} Trade Payables Turnover Ratio = \frac{4 , 20 , 000}{1 , 42 , 000} \approx 2.9577 times \approx 2.96 times

Practice this question

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Based on Case Study 1, what is the Trade Payables Turnover Ratio?

A

2.86 times

B

2.96 times

C

2.56 times

D

2.16 times

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Financial Statements Ratios Trade Payables Turnover

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