Shiva

7y ago

We can see Working Capital figure changing A. Voucher configuration B. Profit & Loss configuration C. Balance Sheet configuration D. Ledger configuration

1

Akhil Tanakala 7y ago

The working capital figure, which is also known as working capital, is defined as a company's current assets minus its current liabilities. Examples of Changes in Working Capital If a company's owners invest additional cash in the company, the cash will increase the company's current assets with no increase in current liabilities. Therefore working capital will increase. If a company obtains a long-term loan to replace a current liability, current liabilities will decrease but current assets do not change. Therefore working capital will increase. We can see Working Capital figure changing Balance Sheet configuration.

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