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XYZ Ltd made an operating profit in 2012 but has increased its overdraft during the year. Which of the following factors could explain this?

a. Taking extended periods of credit from its suppliers. b. Additional investment in purchased fixed assets. c. Reducing its depreciation charge for the year. d. Reducing the period of credit allowed to its customers

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Question added by Deleted user
Date Posted: 2013/08/22

Addition purchase can only be related closely to increasing in overdraft as all others do not necessary to affect O/D

هشام عبدالله خليفه محمد
by هشام عبدالله خليفه محمد , Senior Accountant , Al Watania Paper Product Co

a.
Taking extended periods of credit from its suppliers

Emad Ramadan
by Emad Ramadan , Internal Auditor , Liptis Egypt for Pharmaceuticals & Medical Products S.A.E

c.
Reducing its depreciation charge for the year.

Khalid Noor
by Khalid Noor , Accounting Manager , FedEx

C & D

Deleted user
by Deleted user

Option a

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