Which of the following formulae is INCORRECT? Correct formulas are: •
| Which of the following formulae is INCORRECT?
A. Gain in share of continuing partner = New share – old share
B. Average collection period = 365/Creditors turnover ratio
C. Operating expenses = Cost of goods sold + selling expenses + Administrative expenses
D. Number of share to be issued = Amount Payable / Issue Price
Right Answer is: B
SOLUTION
Correct formulas are:
• The gain in the share of continuing partner = New share – old share
• Average collection period = 365/Average Receivable turnover ratio
• Operating expenses = Cost of goods sold + selling expenses + Administrative expenses
• Number of shares to be issued = Amount Payable / Issue Price
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