Any change in Current Liabilities will effect inverse change in the working capital.

Name: Any change in Current Liabilities will effect inverse change in the working capital.
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Question

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An increase in current liabilities decreases working capital, while a decrease in current liabilities increases working capital, assuming current assets remain constant. This is because working capital is calculated as current assets minus current liabilities.

Any Change in Current Liabilities Will Effect Inverse Change in the Working