Schedule of changes - Effect of current assets on working capital

Q.  Which of the following rules stands true while preparation of Schedule of changes in working capital?

A) An increase in current assets increases working capital.
B) An increase in current assets decreases working capital.
C) An increase in current liabilities decreases working capital.
D) An increase in current liabilities increases working capital.
- Published on 09 Sep 15

a. A and C
b. A and D
c. B and D
d. A, B, C and D

ANSWER: A and C

Related Content

➨ Post your comment / Share knowledge


Enter the code shown above:

(Note: If you cannot read the numbers in the above image, reload the page to generate a new one.)
▲