Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 21 - No. 12)
Which of the following statements is true regarding the use of the total trade receivables account?
It is used to calculate cash payments made to suppliers.
It can be used to calculate the value of credit purchases.
It helps to calculate the total credit sales for the period.
The credit side represents cash received from debtors.
Explanation
It's designed to analyze the movement in trade receivables which help to assess the credit sales.
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