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Accounting for IGCSE & O level - Advanced Principles (Section 4 - No. 46)

What is the impact on working capital if a company pays off short-term liabilities with cash?
Working capital increases
Working capital decreases
Working capital remains the same
Cannot be determined

Објашњење

Paying off short-term liabilities with cash reduces both current assets (cash) and current liabilities, leaving working capital unchanged.

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