- Excess inventories and lack of control over accounts receivable lead to an increased level of unused assets, increased costs and liquidity problems.
- Cash: current assets (customer pay by giving the business cash)
- Accounts receivable: current assets (debt that is owed to the business)
- Inventories: current assets (products the business will sell to customers)
Extract from Business Studies Stage 6 Syllabus. © 2010 Board of Studies NSW.