Accounting for IGCSE & O level - Final Statements (Section 4 - No. 19)
Which of the following transactions would *decrease* a company's working capital?
Borrowing money from the bank
Selling goods on credit
Purchasing inventory on credit
Collecting accounts receivable
ব্যাখ্যা
Purchasing inventory on credit (accounts payable) increases current liabilities without a corresponding increase in current assets.