A consulting firm provided services last month and billed its client.This month,the company received payment from the customer.What impact does this month's transaction have on the firm's working capital?

Question

Quizplus · Accepted Answer

Receiving payment from the customer impacts the firm's cash and accounts receivable. Cash increases while accounts receivable decreases by the same amount, leaving the working capital (current assets - current liabilities) unchanged.

A Consulting Firm Provided Services Last Month and Billed Its