New RBI Grade B 2025 Notification will come Soon! Enroll Here

Question

A firm has current assets of ₹8 lakh and current

liabilities of ₹5 lakh. If it collects ₹1 lakh from debtors and uses it to pay creditors, what happens to working capital?

A Increases by ₹1 lakh

B Decreases by ₹1 lakh

C No change

D Increases by ₹2 lakh

Practice Next

More Accounts Questions

In the banking parlance, CTS stands for –
Which of the following is not a discounted cash flow methods for evaluating capital investment proposals:
In the context of the IFSCA Circular (January 2024), what is the minimum income threshold for an individual to qualify as an Accredited Investor?
Calculate the asset turnover from the above information
Which of the following are used by RBI as key measure of inflation?
Which of the following fintech firm became the first online bond platform provider to receive a debt brokerage license from SEBI?
As per the recent guidelines by RBI for issuance of Share Capital by Rural Co-operative Banks, what is the limit of the outstanding amount of PNCPS and ...
What is the form in which bullion is traded on the India International Bullion Exchange (IIBX)?
Current Assets (at cost) Rs.24,00,000, Credit Sales Rs. 68,00,000, Cash Sales Rs.600,000, Sales Return Rs.2,00,000. What can be Current Assets Turnover ...
To be eligible for transitioning into a Universal Bank, what is the maximum permissible Gross Non-Performing Assets (GNPA) ratio for the SFB in the last...