O-LevelAccountingAnalysis and interpretation7707/13 · Oct/Nov 2022 · Q321 Mark

How can a trader increase her current ratio?

Akeep inventory at the lowest possible level

Bobtain a long-term bank loan

Creduce the trade receivables turnover

Dsell goods for cash instead of on credit

✓ Correct answer

B: obtain a long-term bank loan

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Topic: Analysis and interpretation, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, Oct/Nov 2022 Paper 1 Variant 3, question 32.

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