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

Explanation

Collecting accounts receivable increases current assets (cash), and obtaining a short-term loan also increases current assets, hence increasing working capital.

Accounting for IGCSE & O level - Final Statements (Section 11 - No. 43)

Explanation

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