From the following choices, select the answer that describes the effect on working capital as a result of the transaction.
-Paid cash for supplies
A)Working capital will increase
B)Working capital will decrease
C)Working capital will not change

Question

Quizplus · Accepted Answer

Paying cash for supplies decreases cash but increases supplies, both of which are current assets, so the overall working capital remains unchanged.

From the Following Choices, Select the Answer That Describes the Effect