Accounting 9706 · AS & A Level · Analysis and communication of accounting information

Analysis and communication of accounting information — practice question

A company obtains finance by issuing debentures. What effect does this have on net current assets and short-term profits?

  • Anet current assets decrease, short-term profits decrease
  • Bnet current assets decrease, short-term profits increase
  • Cnet current assets increase, short-term profits decrease
  • Dnet current assets increase, short-term profits increase

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