Accounting for IGCSE & O level - Advanced Principles (Section 7 - No. 28)
What does the text suggest about the relationship between selling inventory quickly and a company’s working capital position?
Selling inventory quickly has no effect on working capital.
Selling inventory quickly can improve a company's working capital position.
Selling inventory quickly always worsens a company's working capital position.
Selling inventory quickly always lowers a company's working capital position.
Explanation
Rapid selling of inventory is a good practice for working capital.