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All of the following are affected when merchandise is purchased on credit except: A. Total current assets B. Net working capital C. Total current liabilities D. Current ratio?

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Question ajoutée par Ahmed Dawoud , Senior Accountant , HI PROF General Trading & Contracting
Date de publication: 2016/02/08
Rehan Qureshi
par Rehan Qureshi , Financial Consultant , Self Employeed

it seems that option B is the correct answer of your question

هيثم ناجى
par هيثم ناجى , محاسب اول , الفيوم لصناعة السكر

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

abdulaziz khorshid
par abdulaziz khorshid , CREDIT MANAGER , RASHED ABDUL RAHMAN ALRASHED

b is correct .................................

Mohamed matar
par Mohamed matar , Finance Manager , ASG Group

>>>>>>>>>> b <<<<<<<<<<<<<<

حسين محمد ياسين
par حسين محمد ياسين , Finance Manager , مؤسسة عبد الماجد محمد العمر للمقاولات العامة

answer B ...................................................

Almutaz Bakry Sidahmed
par Almutaz Bakry Sidahmed , Internal Audit Manager , Banan real estate

B is answer as all other accounts will be affected.

Utilisateur supprimé
par Utilisateur supprimé

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.

Utilisateur supprimé
par Utilisateur supprimé

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 .

 

Vicky Polistico Ducot, CPA
par Vicky Polistico Ducot, CPA , Assistant Accountant , Kongsberg Maritime Middle East DMCCO

b. Net working Capital  - No increase or decrease in computing net working capital

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

B. Net working capital....................................

Anas Touqan
par Anas Touqan , مدير قسم المحاسبة , شركة التكامل الغذائي للتجارة والتسويق

B. Net working capital ,,,,,,,,,,,,, 

 

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