Accounting for IGCSE & O level - Advanced Principles (Section 7 - No. 2)
Which of the following is a factor that will cause the working capital and quick ratio to deteriorate?
Paying off short-term liabilities with long-term assets
Increasing the proportion of cash held by the business
A failure to control costs in the business
Selling more stock capital
Paliwanag
A failure to control costs will reduce working capital and quick ratio.