The following figures are extracted from the financial statements of Brindle Bucket Limited at 31 March 20X8: The budgeted inventory turnover period in days for the company for the financial year ended 31 March 20X8 was 59.3 days.Trade payables turnover period in days was budgeted at 84.1 days.
Which one of the following statements is correct?
A)Both ratios calculated on actual figures were worse than budgeted.
B)The inventory turnover ratio calculated on actual figures was better than budgeted but the trade payables turnover ratio was worse.
C)Both ratios calculated on actual figures were better than budgeted.
D)The inventory turnover ratio calculated on actual figures was worse than budgeted but the trade payables turnover ratio was better.

Question

The following figures are extracted from the financial statements of Brindle Bucket Limited at 31 March 20X8:  The budgeted inventory turnover period in days for the company for the financial year ended 31 March 20X8 was 59.3 days.Trade payables turnover period in days was budgeted at 84.1 days.
Which one of the following statements is correct?
A)Both ratios calculated on actual figures were worse than budgeted. 
B)The inventory turnover ratio calculated on actual figures was better than budgeted but the trade payables turnover ratio was worse. 
C)Both ratios calculated on actual figures were better than budgeted. 
D)The inventory turnover ratio calculated on actual figures was worse than budgeted but the trade payables turnover ratio was better.

Quizplus · Accepted Answer

The Answer of The following figures are extracted from the financial statements of Brindle Bucket Limited at 31 March 20X8:  The budgeted inventory turnover period in days for the company for the financial year ended 31 March 20X8 was 59.3 days.Trade payables turnover period in days was budgeted at 84.1 days.
Which one of the following statements is correct?
A)Both ratios calculated on actual figures were worse than budgeted. 
B)The inventory turnover ratio calculated on actual figures was better than budgeted but the trade payables turnover ratio was worse. 
C)Both ratios calculated on actual figures were better than budgeted. 
D)The inventory turnover ratio calculated on actual figures was worse than budgeted but the trade payables turnover ratio was better.

The Following Figures Are Extracted from the Financial Statements of Brindle