Which of the statements below is TRUE? Decreases in accounts receivables constit

ID: 2733325 • Letter: W

Question

Which of the statements below is TRUE?

Decreases in accounts receivables constitute a use of cash flow because you are helping your customers finance their purchases.

Decreases in accounts payable constitute a source of cash flow because you are using your suppliers to help finance your business operations.

An increase in working capital can be brought about by an increase in inventory.

The increase in working capital accounts necessary to support a project also provides for cost increases at the end of the project.

Decreases in accounts receivables constitute a use of cash flow because you are helping your customers finance their purchases.

Decreases in accounts payable constitute a source of cash flow because you are using your suppliers to help finance your business operations.

An increase in working capital can be brought about by an increase in inventory.

The increase in working capital accounts necessary to support a project also provides for cost increases at the end of the project.

Following Statement is correct.

The increase in working capital accounts necessary to support a project also provides for cost increases at the end of the project.

Working Capital is required to meet the day to day expenditure of the concern,so increase in Working Capital is required to support a business.

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.