Accounting for IGCSE & O level - Final Statements (Section 11 - No. 43)
Which of the following items would increase a company's working capital?
Collecting accounts receivable
Paying accounts payable
Purchasing inventory on credit
Obtaining a short-term loan
Paskaidrojums
Collecting accounts receivable increases current assets (cash), and obtaining a short-term loan also increases current assets, hence increasing working capital.