CIMAPRA19-F01-1 Exam - Topic 4 Question 132 Discussion

Question

The following information relates to ABC.Which of the following would be a reason for the movement in the trade receivable days?

Graham · Accepted Answer

D) It was decided during the year ended 30 June 20X3 to stop undertaking credit checks on new customers.

Graham · Answer

A) A new credit controller was appointed during the year ended 30 June 20X3 who has been chasing customers for payment.

Graham · Answer

B) A system of early settlement discount was introduced during the year ended 30 June 20X3 which was taken up by quite a few customers.

Graham · Answer

C) One customer who regularly took 120 days to pay their invoices stopped buying goods from ABC during the year ended 30 June 20X3.