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A co will be declared to be overtrading when it faces which of the following
a)excessive non current assets
b)too much working capital
c)shortage of working capital
d)shortage of non current assetsWhy are you setting me test questions? You must have an answer in the same book in which you have found the question!!!
Nobody ever ‘declares’ a company to be overtrading! However, it is (c) that suggests that the company might be overtrading.
I explain the reason for this in my free lectures. The lectures are a complete free course for Paper FM and cover everything needed to be able to pass the exam well.
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