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A-LevelAccountingAnalysis and communication of accounting information9706/12 · Oct/Nov 2011 · Q181 Mark

When is working capital most likely to increase?

Awhen the business increases its selling prices
Bwhen the credit period allowed to customers is reduced
Cwhen the credit period taken from suppliers is increased
Dwhen the value of inventory decreases

✓ Correct answer

A: when the business increases its selling prices

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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 2011 Paper 1 Variant 2, question 18.

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