Accounting Multiple Choice Question – 1 January 2021

A company wishes to improve its current ratio and its acid test ratio. 

How can this be done?

Select ONE answer:

1. increasing discounts to debtors
2. increasing the provision for doubtful debts
3. purchasing additional stock on credit
4. selling fixed assets

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct

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