Accounting for IGCSE & O level - Advanced Principles (Section 1 - No. 11)
Which of the following is true about working capital?
A high proportion of short-term debt is good for a business.
A business with a good working capital position will have substantial cash balances.
Working capital is the same as cash.
Efficient management of inventory boosts a business’s working capital position.
Explanation
Efficient management of inventory boosts a business’s working capital position.