Hamish Plc Expects to Have an Overdraft at the End

question 1

Multiple Choice

Hamish plc expects to have an overdraft at the end of the next financial year. Which one of the following courses of action would increase the bank overdraft?

• A) Reducing the level of inventory held.
• B) Increasing the credit period allowed to customers.
• C) Increasing the time taken to pay suppliers.
• D) Renting, instead of purchasing, the new company vans.

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