Accounting Multiple Choice Question – 12 February 2022

A reduction in the quantity or value of inventories held would normally?

Select ONE answer:

1. Improve cash flow
2. Worsen cash flow
3. Increase operating profit
4. Reduce fixed costs

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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