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Muskan Gupta posted an Question
August 26, 2020 • 01:23 am
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30 points
30 points
- UGC NET
- Commerce
5. which of the following will result into sources of funds? (1) increase in current assets (11) decrease in current assets (111) increase in current liabilitie
5. Which of the following will result into sources of funds? (1) Increase in current assets (11) Decrease in current assets (111) Increase in current liabilities (iv) Decrease in current liabilities Codes: (A) ) and (iv) (B) (ii) and (iii) C) i) and (iii) (D) (i) and (iv) Answer: (B)
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Priya gulani Best Answer
decrease in current assets decreases the working capital, so it will be shown as source of fund. similarly increase in current liability decreases the working capital, so will be shown as source of fund. (working capital = current assets - current liability)