Multiple Choice
Hard-up Ltd has a current ratio of 0.75.Its current liabilities amount to $200 000.It borrows $75 000 from a finance company,repayable in five years.
-What is the effect of the loan on working capital?
A) There is no effect.
B) There is an increase of $75 000.
C) There is a decrease of $75 000.
D) It cannot be determined from the above information.
Correct Answer:
Verified
Correct Answer:
Verified
Q4: Which of the following is NOT true
Q17: Good credit control is signalled by:<br>A) high
Q31: Which of the following could explain a
Q33: Unstable Ltd has decided to change its
Q34: The following question relates to PQR,which has
Q35: Which of the following statements is true?<br>A)
Q37: Hard-up Ltd has a current ratio of
Q38: The following question relates to PQR,which has
Q40: Which of the following could NOT explain
Q41: Alda Ltd's accounts receivable for year ended