Register now or log in to join your professional community.
<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>
Option C
Option C) That debtors collection period has increased
Deterioration in managing capital is linked to the organization's ability to debt collection and collection period correct answer is the answer C
c is the correct one
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
OPTION IS THE CORRECT ANSWER DIVYESH
answer is C
