Management Accounting Test Questions

Q.  Which of the following rules stands true while preparation of Schedule of changes in working capital?

A) An increase in current assets increases working capital.
B) An increase in current assets decreases working capital.
C) An increase in current liabilities decreases working capital.
D) An increase in current liabilities increases working capital.


a. A and C
b. A and D
c. B and D
d. A, B, C and D


ANSWER: See Answer
 
No explanation is available for this question!