Register now or log in to join your professional community.
it seems that option B is the correct answer of your question
B is correct
net working capital will not affect
total assets will be affect because inventory increases
total current liabilities will be affect because A/P is increases
current ratio equal to CA/CL will affect
because the increases of numerator by the same value of denominator should decrease the ratio
b is correct .................................
>>>>>>>>>> b <<<<<<<<<<<<<<
answer B ...................................................
B is answer as all other accounts will be affected.
B is the answer
Other things would be affected but due to change in Current assets as well as Current liabilities with same amount, there will be no change in NWC.
Net working capital = total current assets - total current liabilities .
the entry is :
Debit / inventory account - perpetual
Credit / accounts payable
hence net working capital will not affect as a result of increasing current assets and current liabilities at the same time .
b. Net working Capital - No increase or decrease in computing net working capital
B. Net working capital ,,,,,,,,,,,,,