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-   -   What is the affect of paying accounts payable on working capital? (https://www.askmehelpdesk.com/showthread.php?t=826948)

  • Aug 13, 2016, 10:50 PM
    kchauhan1
    What is the affect of paying accounts payable on working capital?
    Complete question:

    How would a company's working capital be affected if a substantial amount of accounts payable were paid in cash?

    a. it would be unaffected
    b. it would fall
    c. it would increase
    d. the change would depend on the relationship between the payable liquidated and current liabilities
  • Aug 14, 2016, 09:38 AM
    ma0641
    We don't answer an obvious homework question . However, think about your question. If you had $1000 in your wallet and paid $999 cash for something, what would happen to your working capital? Now, what happened to the account payable? What does it do?
    What is the result?

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