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<p><strong>(a)Total Sales,</strong></p> <p><strong>(b)Average Payables,</strong></p> <p><strong>(c)Current Ratio,</strong></p> <p><strong>(d)Bad Debt loss.</strong></p>
Average Payables (B)
Option B is the answer: Average Payables. Increase in debtors or receivables can be resulted from increased sales. So the total sales may show a change. The debtors are under current assets, so the current ratio also may change. Since the debtors have increased, bad debt loss also may increase. But, this has nothing to do with the creditors or payables.
(d)Bad Debt loss.
B
D) bad debt loss
"It should be noted that provision for bad and doubtful debts should not be deducted since this may give an impression that some amount of receivables has been collected."
The answer is Option-B (Average Payable).
(b)Average Payables,
Payables as it is not where to debtors.
Average Payables Correct B
