if accounts payable increase, what happens to working capital?\nworking capital doubles\nworking capital is…

if accounts payable increase, what happens to working capital?\nworking capital doubles\nworking capital is not affected\nworking capital decreases\nworking capital increases

if accounts payable increase, what happens to working capital?\nworking capital doubles\nworking capital is not affected\nworking capital decreases\nworking capital increases

Answer

Brief Explanations:

Working capital is calculated as current assets minus current liabilities. Accounts payable is a current - liability. When accounts payable (a current liability) increases, assuming current assets remain the same, the value of current assets minus current liabilities (working capital) decreases.

Answer:

Working capital decreases