[amp_mcq option1=”Rs. 1,20,000″ option2=”Rs. 2,20,000″ option3=”Rs. 3,20,000″ option4=”Rs. 20,000″ correct=”option1″]<\/p>\n
The correct answer is A. Rs. 1,20,000.<\/p>\n
Working capital is the difference between current assets and current liabilities. It is a measure of a company’s ability to meet its short-term obligations. A decrease in working capital indicates that a company is having difficulty meeting its short-term obligations.<\/p>\n
To calculate the decrease in working capital, we can use the following formula:<\/p>\n
Decrease in working capital = Current assets in 2014 – Current assets in 2015 – (Current liabilities in 2014 – Current liabilities in 2015)<\/p>\n
= 5,00,000 – 3,20,000 – (3,60,000 – 4,00,000)<\/p>\n
= 1,20,000<\/p>\n
Therefore, the decrease in working capital is Rs. 1,20,000.<\/p>\n
Option B is incorrect because it is the decrease in current assets. Option C is incorrect because it is the decrease in current liabilities. Option D is incorrect because it is the increase in working capital.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”Rs. 1,20,000″ option2=”Rs. 2,20,000″ option3=”Rs. 3,20,000″ option4=”Rs. 20,000″ correct=”option1″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-50570","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"\n