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.

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