PDA

View Full Version : True or false?


jmgaravaglia
Nov 19, 2010, 12:48 PM
The payment of a current liability will affect the amount of working capital because cash decreases.

Just Looking
Nov 19, 2010, 12:59 PM
Working capital = current assets - current liabilities

A payment of a current liability decreases current assets due to cash, but it also decreases current liabilities. Working capital stays the same.