Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Considering that the credit policy of Steward (Pty) Ltd is 90 days, which one of the following statements is true when analysing the debtors collection
Considering that the credit policy of Steward (Pty) Ltd is 90 days, which one of the following statements is true when analysing the debtors collection period?
- A. The debtors collection period improved from 2020 to 2021, and the company is still collecting debtors within their credit policy terms of 90 days.
- B. The debtors collection period improved from 2020 to 2021, which is also good for the cash flow of the company.
- C. The debtors collection period worsened from 2020 to 2021, and the company is not collecting debtors within their credit policy terms of 90 days.
- D. The debtors collection period worsened from 2020 to 2021, but debtors are collected within their credit policy terms of 90 days.
- E. The debtors collection period remained constant from 2020 to 2021.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started