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Accounting for IGCSE & O level - Final Statements (Section 4 - No. 19)

Which of the following transactions would *decrease* a company's working capital?
Borrowing money from the bank
Selling goods on credit
Purchasing inventory on credit
Collecting accounts receivable

Giải thích

Purchasing inventory on credit (accounts payable) increases current liabilities without a corresponding increase in current assets.

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