A-LevelAccountingPreparation of financial statements9706/12 · May/June 2012 · Q161 Mark

A company raises finance by issuing debentures. What is the effect on net current assets and short term profits? net current assets profits decrease decrease decrease increase increase decrease increase increase

Adecrease decrease

Bdecrease increase

Cincrease decrease

Dincrease increase

✓ Correct answer

C: increase decrease

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Topic: Preparation of financial statements, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2012 Paper 1 Variant 2, question 16.

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