Advanced Financial Management 2 MCQ: Which of the following rules stands true while preparation of 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 | Extra Education

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Which of the following rules stands true while preparation of 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

Correct Answer: 1 and 3

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Advanced Financial Management 2 MCQ: Which of the following rules stands true while preparation of 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 | Extra Education