P2 C6 CASH FLOW STATEMENT — Elements of Account STD 12 Commerce — Question
Gujarat BoardEnglish MediumSTD 12 CommerceElements of AccountP2 C6 CASH FLOW STATEMENT1 Mark
Question
Describe whether cash flow would increase or decrease due to following transactions :
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Answer
$(1)$ Increase $1n$ current assets $(ii)$ Decrease in current assets $(iii)$ Increase in current liabilities $(iv)$ Decrease in current liabilitiesEffect of increase/decrease in current assets and current liabilities due to operating cash flow:
$(i)$ Increase in current assets -> Working capital increase
$(ii)$ Decrease in current assets --> Working capital decrease
$(iii)$ Increase in current liabilities -> Working capital decrease
$(iv)$ Decrease in current liabilities --> Working capital increase
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