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There is deterioration in the management of working capital of ABC Ltd. What does it refer to?

<p>a- That the Capital Employed has reduced</p> <p>b- That the Profitability has gone up</p> <p>c- That debtors collection period has increased</p> <p>d- That Sales has decreased</p> <p> </p>

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Question added by Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town
Date Posted: 2014/12/12
Basit Ali
by Basit Ali , Director of Engineering , Laverda Suites & Villas / Blue Bay Resorts

Option C

SREEDEVI SUNILKUMAR
by SREEDEVI SUNILKUMAR , Business finance officer , Emirates Airline

C

Kamran Anjum
by Kamran Anjum , Head of Internal Audit , Rafhan Maize Products Company limited, Faisalabad, Pakistan, Ingredion Incorporated Gmbh

Option C) That debtors collection period has increased

georgei assi
by georgei assi , مدير حسابات , المجموعة السورية

Deterioration in managing capital is linked to the organization's ability to debt collection and collection  period correct answer is the answer C  

Mir Mujtaba Ali
by Mir Mujtaba Ali , Internal Audit Manager , Confidential

C

mohammed elkheniny
by mohammed elkheniny , Financial Controller , DNM FOR SPINNING& WEAVING AND DYING

c is the correct one

Khurrum Iqbal
by Khurrum Iqbal , Accountant , Akun Logistic Services

C is close among given options, provided creditors payment is not entirely depend upon debtors collection, which eventually hit cash & cash equivalents including cash sales (if any), which in turn deteriorates liquidity of the company.

 

Working Capital = CA - CL  

Faraz Sultan
by Faraz Sultan , head of regional operations , BMSA GLOBAL

C

MALIIK SOHAIL ABBAS
by MALIIK SOHAIL ABBAS , ACCOUNTS MANAGER , AL RAWDAH GREEN SWEET WATER

OPTION IS THE CORRECT ANSWER DIVYESH

Ahmed kandil
by Ahmed kandil , Cost Controller , Battour Holding Cpompany

answer is C 

Deleted user
by Deleted user

the answer is option   C

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