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متابعة

Which of the following lead to a Rise in net working capital?

<p style="text-align:left;">- High inventory and decrease of accrued expenses.</p> <p style="text-align:left;">- rising Creditors and decrease of Debtors .</p> <p style="text-align:left;">- Decrease-current assets And rising permanent funds.</p> <p style="text-align:left;">- Decrease of fixed assets And rising current liabilities.</p>

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تم إضافة السؤال من قبل مستخدم محذوف‎
تاريخ النشر: 2014/11/18

High Inventory  is a part of your current assets and definitely once it is sold , it can be converted into cash, so it is added to your working capital. Since accrued expenses, is part of your liability, once it is decrease, then, your liability would also decrease.

مستخدم محذوف‎
من قبل مستخدم محذوف‎

HIgh inventory and decrease of accrued expenses

RATHEESH RAVEENDRAN
من قبل RATHEESH RAVEENDRAN , Graduate Teacher (Head of Business Department) , HANIMAADHOO SCHOOL

Either increase in current assets or decrease in current liabilities leads to Rise in net working capital.

Mir Mujtaba Ali
من قبل Mir Mujtaba Ali , Internal Audit Manager , Confidential

Agree with first two answers

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