Accounting · Working Capital Management
Which of the following statements provides a plausible reason for a decrease in the working capital balances of a company during a financial year? 1) A decrease in inventories due to a successful year-end warehouse sale. 2) A decrease in trade receivables due to the recruitment of an experienced credit controller. 3) A decrease in trade payables due to the company seeking prompt payment discounts instead of utilizing the full credit period terms.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Statement (3) only
- 2Statements (1) and (2)✓
- 3Statement (2) only
- 4Statement (1) only
Correct answer
Statements (1) and (2)
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