Accounting Multiple Choice Question – 17 August 2023

What might cause working capital / net current assets to fall?

Select ONE answer:

1. an amount owing by a customer has turned out to be a bad debt
2. an old delivery van has been given in full exchange for a new computer
3. a payment of cash has been made to a trade payable
4. new inventory has been purchased 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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