QUESTION: 25

From the list below identify the item that appears in the statement of financial position.

The amount of interest charged on loans during the year.
The amount of loans outstanding at the year end.
The amount of loans repaid during the year.
The amount of interest actually paid during the year.

Answer(s): B

QUESTION: 26

The following information relates to ABC.

Which of the following would be a reason for the movement in the trade receivable days?

A new credit controller was appointed during the year ended 30 June 20X3 who has been chasing customers for payment.
A system of early settlement discount was introduced during the year ended 30 June 20X3 which was taken up by quite a few customers.
One customer who regularly took 120 days to pay their invoices stopped buying goods from ABC during the year ended 30 June 20X3.
It was decided during the year ended 30 June 20X3 to stop undertaking credit checks on new customers.

Answer(s): D

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QUESTION: 27

Which of the following is NOT a source of short-term finance?

Increase in trade receivables
Increase in trade payables
Debt factoring
Increase in a bank overdraft

Answer(s): A

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CORRECT TEXT
AAA has the following working capital ratios at 30 March 20X4:

During the year ended 30 March 20X4 credit purchases were $3,600 and at 30 March 20X4 the outstanding trade payables amounted to $522.
The year ended 30 March 20X4 was not a leap year.
Calculate the working capital cycle for AAA.
Give your answer to one decimal place.

26.2 Days

Answer(s): A

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QUESTION: 25

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QUESTION: 28