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Commerce · Q74

Business Finance

Graduate and Post Graduate · Commerce · question 74

Q74

Which one of the following combination of rules stands true while preparing schedule of changes in working capital? 1. An increase in current assets increases working capital. 2. An increase in current assets decreases working capital. 3. An increase in current liabilities decreases working capital. 4. An increase in current liabilities increases working capital.

A.
Both 1 and 4
B.
Both 1 and 3
Answer
C.
Both 2 and 3
D.
Both 3 and 4

Answer: Option B

Solution

Answer: Option B
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