Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 19 - No. 43)
Which of the following statements is true regarding the use of the total trade payables account?
It is used to calculate cash payments made to customers.
It can be used to calculate the value of credit purchases.
It helps to calculate the total credit sales for the period.
The debit side represents cash received from debtors.
Explanation
It's designed to analyze the movement in trade payables which help to assess the credit purchases.
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