Question
How does the purchase of a new machinery to expand
production capacity impact the working capital of ABC Limited?Solution
Working capital = Current Assets – Current Liabilities. When a company purchases fixed assets like machinery, there are two possible scenarios: • Cash purchase → Cash (a current asset) decreases, which reduces working capital. • Credit purchase → Creditors (a current liability) increase, which also reduces working capital. Thus, in either case, the purchase of new machinery results in a reduction of working capital, even though it simultaneously increases the fixed assets and total assets of the company.
Find the wrong number in the following number series:
1250, 500, 200, 80, 30
Select the option that is related to the third letter-cluster in the same way as the second letter-cluster is related to the first letter-cluster.
<...A paper is folded and cut as shown below. How will it appear when unfolded ?
Select the set in which the numbers are related in the same way as are the numbers of the given sets.
(NOTE: Operations should be performed on th...
Pointing at a girl, Seema said, “She is my father’s mother’s husband’s only son’s daughter.” How is that girl related to Seema?
...Vacant : Empty : : Enormous : ?
Change the question mark with the option that follows the applied logic in the first pair.
Man: Woman :: Boys: ??
A series is given with one term missing. Select the correct alternative from the given ones that will complete the series.
RT, WE, BP, GA, ?
What should come in place of question mark (?) in the given series based on the English alphabetical order?
AYF, FUI, KQL, PMO, ?
Select the combination of letters that, when sequentially places in the gaps of the given letter series will complete the series.
E_ I _ _ EL _ _...
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