Day: July 14, 2021

What would increase the working capital (current) ratio of a business?

Select ONE answer:

1. buying stock on credit for £2,000 and selling immediately for £3,000 cash
2. paying creditors £1,000 cash
3. purchasing a fixed asset of £10,000 on credit
4. selling stock of £1,000 at cost price on credit

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

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

The answer is 1

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

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