Which of the following would indicate a strengthening of the current ratio (assume all other elements of working capital remain constant) ?
A) An increasing bank overdraft
B) An increase in the period of credit taken from credit suppliers
C) A decrease in the period of credit allowed to credit customers
D) A decrease in the rate of inventory turnover
Correct Answer:
Verified
Q1: Net assets equals:
A) Current assets less current
Q2: What is the ideal quick ratio for
Q3: In the absence of industry benchmarks what
Q5: The rate of inventory turnover is eight
Q6: The percentage return on the owners opening
Q7: The working capital is: Refer To:
Q8: The net assets figure is: Refer To:
Q9: The following information relates to Questions 9
Q10: The following information relates to Questions 9
Q11: The following information relates to Questions 9
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