Analysing the Changes from the End of 20 × 5

question 60

Multiple Choice

Analysing the changes from the end of 20 × 5 to the end of 20 × 6,which of the following statements is correct about the protection provided to creditors by the company's financial position?

• A) Creditors would see no change in the level of protection.
• B) Creditors would see increased protection.
• C) Creditors would see decreased protection.
• D) There is insufficient information to attempt to answer this question.