Accounting Multiple Choice Question – 4 October 2025

Which ONE of the following options is a sign of overtrading?

Select ONE answer:

1. Inventory decreasing
2. Cash Increasing
3. Payables decreasing
4. Receivables increasing

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 == >    Receivables would be increasing as the company expands without the resources to support the expansion.

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