Credit revenue from operations Rs.6,00,000; Cash revenue from operations Rs.1,50,000; Debtors Rs.1,00,000; B/R Rs.50,000. Average Collection Period will be :
A. 2 Months
B. 2.4 Months
C. 3 Months
D. 1.6 Months
Answer:C
Credit revenue from operations Rs.6,00,000; Cash revenue from operations Rs.1,50,000; Debtors Rs.1,00,000; B/R Rs.50,000. Average Collection Period will be :
A. 2 Months B. 2.4 Months C. 3 Months D. 1.6 Months