Accounting for IGCSE & O level - Advanced Principles (Section 8 - No. 22)
Which action would directly impact a company's working capital?
Purchasing new equipment with cash.
Selling goods on credit.
Receiving cash payments from customers.
Taking out a long-term loan.
Paliwanag
Working capital is influenced by the conversion of cash to other current assets or current liabilities, so purchasing equipment directly impacts the capital.