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A-LevelAccountingAnalysis and communication of accounting information9706/12 · Oct/Nov 2009 · Q191 Mark

What will result in a reduction of working capital?

Adecreasing the rate of stock turnover
Breducing the debtor collection period by offering discounts
Creducing the time taken to pay suppliers
Dselling some surplus fixed assets

✓ Correct answer

B: reducing the debtor collection period by offering discounts

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About this question

Topic
Analysis and communication of accounting information, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source
A-Level Accounting, Oct/Nov 2009 Paper 1 Variant 2, question 19.

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