WAEC Accounting 2020 Objective — Question 20
Question 20 of 50 from the West African Examinations Council (WAEC) Accounting 2020 Objective paper, with the correct answer and a full explanation.
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Debtors and credit sales for a period are D 120,000 and D 600,000 respectively. The debtor's payment period would be
- A. 1825 days
- B. 365 days
- C. 73 daysCorrect
- D. 5 days
Explanation
Average payment period = (debtors/credit sales) x 365 days = (120,000/600,000) x 365 = 73 days.
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