Accounting for IGCSE & O level - Advanced Principles (Section 6 - No. 27)
A business with a poor working capital position is likely to have which of the following characteristics?
A high proportion of short-term liabilities
Too much inventory
A substantial cash balance
A high proportion of debt on credit
Explication
A business with a poor working capital position is likely to have a high proportion of short-term liabilities and too much inventory.