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What is the average number of days the business takes to collect its debts? A - HSC - SSCE Business Studies - Question 20 - 2018 - Paper 1
Question 20
What is the average number of days the business takes to collect its debts? A. 15 days B. 25 days C. 29 days D. 30 days
Worked Solution & Example Answer:What is the average number of days the business takes to collect its debts? A - HSC - SSCE Business Studies - Question 20 - 2018 - Paper 1
Step 1
Identify the Average Days to Collect Debts
Answer
To determine the average number of days the business takes to collect its debts, we can analyze the options provided and select the most reasonable estimate based on typical business practices.
In this case, the answer choices suggest that the average collection period is likely to fall between 15 and 30 days. Among these options, the most common average range for business debt collection often lies around 25 to 30 days. Evaluating the options:
- A. 15 days: This is quite short for most businesses based on common practices.
- B. 25 days: A plausible average for many businesses.
- C. 29 days: Also a reasonable time frame and close to the upper range.
- D. 30 days: This is the maximum option, which is usually acceptable for many organizations.
Given these considerations, the best choice would be option B, 25 days.