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Which of the following increase working capital ??

A- collecting A/R 

B- sale of products on debt 

C- exchange A/R with fixed assets 

D- paying cash expenses 

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Question added by Ahmed kandil , Cost Controller , Battour Holding Cpompany
Date Posted: 2015/03/14
Abdullah Al Jallad
by Abdullah Al Jallad , Chief Accountant , Sankyu Saudi Arabia

the answer is C- exchange A/R with fixed assets

VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

Answer option >>>>>>>>>>>>>  B- sale of products on debt

Technically Working capital is the difference between Current Assets and Current liabilities.

As a result of credit sales Debtors will increase theby the current Assets.

FITAH MOHAMED
by FITAH MOHAMED , Financial Manager , FUEL AND ENERGY CO for transportion petroleum materials

B->>>>>>>>>>>>> sale of products on debt 

Mohammad Iqbal Abubaker
by Mohammad Iqbal Abubaker , Jahaca Pty Ltd - Accounts Administrator , Jahaca Pty Ltd - Accounts Administrator

B- sale of products on debt increases the working capital .

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