Get the answers you need at Westonci.ca, where our expert community is dedicated to providing you with accurate information. Discover in-depth answers to your questions from a wide network of experts on our user-friendly Q&A platform. Get detailed and accurate answers to your questions from a dedicated community of experts on our Q&A platform.

A(n) _________ in current liabilities _________ net working capital, thereby _________ the risk of technical insolvency. (a) decrease; increases; increasing (b) increase; decreases; increasing (c) increase; increases; reducing (d) decrease; decreases; reducing

Sagot :

An increase in current liabilities decreases net working capital, thereby increases the risk of technical insolvency. Thus the option (B) is correct.

What is Working Capital?

Working capital refers to the current assets minus current liability. It tells about company's day to day operation and indicates about financial capacity  to pay its debt within a year.

Increase in the current liabilities implies that there is a decrease in working capital. Therefore, it implies that company has increased its debt which can result in the risk insolvency.

Thus the option (B) is correct.

Learn more about Working capital here:

https://brainly.com/question/13126692

#SPJ1