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  • Nov 19, 2010, 12:48 PM
    jmgaravaglia
    True or false?
    The payment of a current liability will affect the amount of working capital because cash decreases.
  • Nov 19, 2010, 12:59 PM
    Just Looking

    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.

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