Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

Ratio

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Ratio

Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • March 4, 2017 at 10:09 am #375457
    hemraj123
    Member
    • Topics: 110
    • Replies: 188
    • ☆☆☆

    Sir, In exam for ratios like inventory turnover period, receivables collections period and payables payment period, should we take the average figure or the year end figure for inventory, receivables and payables?

    Thanks

    March 4, 2017 at 11:32 am #375495
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23327
    • ☆☆☆☆☆

    For receivables and for payables we take the year end figure

    For inventory we normally take the average of (opening + closing inventory) / 2 (which is a stupid basis, but it’s the only way we can arrive at some sort of average!)

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • The topic ‘Ratio’ is closed to new replies.