Accounting for IGCSE & O level - Final Statements (Section 7 - No. 39)
Which of the following actions would DECREASE a company's working capital?
Collecting accounts receivable
Paying accounts payable
Selling inventory for cash
Taking out a short-term loan
Paskaidrojums
Working capital is Current Assets - Current Liabilities. Paying accounts payable (a current liability) would decrease working capital.