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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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