From the following information Calculate Trade Receivable Turnover Ratio: Revenue from Operations - 2,00,000 Cash Revenue from Operations- 80,000 Debtors as on 1st April 2020 - 40,000 Debtors as on 31st March 2021 - 20,000
Options:
4 times
6 times
2 times
3 times
Correct Answer:
4 times
Explanation:
T.R.T.R = Credit Revenue From Operations/ Average Trade Receivables = 120000/30000 = 4 times Credit Revenue = 2,00,000 - 80,000 = 1,20,000 Average Trade Receivables = (40000 + 20000)/2 = 30,000