The following extracts come from Ben’s balance sheets at 31 May 20X1 and 20X2 are as follows:
Three of the following six statements are correct: Between 20X1 and 20X2:
1. There has been a decrease in working capital.
2. There has been an increase in working capital.
3. There has been a cash outflow in respect of debtors.
4. There has been a cash inflow in respect of debtors.
5. There has been a cash inflow in respect of stock.
6. There has been a cash outflow in respect of stock.
Which three statements are correct?
A) 2, 3 and 5
B) 2, 3 and 6
C) 1, 4 and 5
D) 1, 4 and 6
Correct Answer:
Verified
Q1: Aziz Ltd made sales of £2 344000
Q2: A decision to increase the credit given
Q3: The following information is available for Katherine
Q6: In the context of working capital the
Q7: Which one of the following transactions increases
Q8: Current assets represent assets held in the
Q9: The nature of working capital will vary
Q10: Overtrading is when the business is trading
Q11: Grunweld Ltd extract of financial information for
Q20: Working capital is the difference between current
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents