Accounting Multiple Choice Question – 14 July 2021

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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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:

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

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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