Raman company has issued 13% debentures for ₹10,00,000 in cash at par. The impact of this item:

CS Executive · Cost and Management Accounting · PYQS · December 2020
Raman company has issued 13% debentures for ₹10,00,000 in cash at par. The impact of this item:
(A) Increase in current assets and working capital
(B) Increase in current liabilities and working capital
(C) Increase in current assets but no increase in working capital
(D) Decrease in current assets and working capital

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Financial Management

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