Accounting for IGCSE & O level - Advanced Principles (Section 1 - No. 45)
Factors that will cause the working capital and quick ratios to improve are:
increasing the principal of cash in hand or in bank for the business
paying off short-term liabilities
selling more share capital
increasing current liabilities
Explanation
Increasing cash, paying off short-term liabilities and selling more share capital improve the working capital and quick ratios, while increasing liabilities does the opposite.
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