• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

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

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

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

Realising Receivable

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBL Exams › Realising Receivable

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by Ken Garrett.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • November 30, 2017 at 8:16 am #419128
    royalringo
    Member
    • Topics: 24
    • Replies: 5
    • ☆

    Regarding to Dec 2012 Q3(Emile),
    How do we calculate the amount of receivable/payment we can realise by reducing/increasing the payment term.

    For example, currently having a trade receivable of $260, with an average payment term of 59 days.

    If we reduced the term to 30days, how to calculate the amount we can realise? (Answer provided is $128.5 without calculation).

    November 30, 2017 at 9:52 am #419141
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10594
    • ☆☆☆☆☆

    As the current collection period is 59.31 days, you simply assume that this represents 59 days of sales If this is reduced to 30 days and 29 days-worth of sales will be received:

    29 x 260/59 = 128

    Similarly, reducing to 40 days releases 19 says worth (ie 19 days’ more sales proceeds received)

    19 x 260/59 = 84

    There are some rounding differences somewhere in the model answer, but the above shows the principle.

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • julio99 on Impairments – Impairment (CGU) – ACCA Financial Reporting (FR)
  • effy.sithole@gmail.com on EPS – diluted EPS Example – ACCA Financial Reporting (FR)
  • Ken Garrett on The Finance Function in the Digital Age – CIMA E1
  • DeborahProspect on ACCA SBR Specimen Exam 2 Question 1
  • darshan.69 on Chapter 9 Pension Schemes TX-UK FA2023

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in