New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    A firm has high current assets turnover but declining

    sales. What strategy should it follow?
    A Increase working capital Correct Answer Incorrect Answer
    B Maintain current ratio Correct Answer Incorrect Answer
    C Tighten receivables and inventory Correct Answer Incorrect Answer
    D Increase trade credit Correct Answer Incorrect Answer

    Solution

    Declining sales with high current asset turnover indicates over-investment. Streamlining receivables and inventory helps improve efficiency.

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