Class 12th Accountancy 2017 Set2 Delhi Board Paper Solution
'Net decrease in working capital other than cash and cash eqivalents' will increase, decrease or not change cash flow from operating activities. Give reason in support of your answer
Net decrease in working capital denotes that the increase in current assets and decrease in current liabilities (Cash Outflows) is more than decrease in current assets and increase in current liabilities (Cash Inflows). So, the net effect is decrease in cash flow from operating activities.
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