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

Looking for the answer to the question below related to Financial Management?

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

 Options:

A. That the Capital Employed has reduced
B. That the Profitability has gone up
C. That debtors collection period has increased
D. That Sales has decreased

 

The Correct Answer Is:

  • C. That debtors collection period has increased

 

Conclusion

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