Depreciation does not directly affect working capital as it is a non-cash expense.

Increasing accounts payable increases working capital as it reduces current liabilities.

Working capital is calculated using the formula: Current Assets - Current Liabilities.

The primary focus of working capital management is ensuring liquidity and operational efficiency.

The primary goal of managing working capital is ensuring liquidity and operational efficiency.

The primary purpose of working capital management is to ensure a company can meet its short-term obligations.

The FIFO (First In, First Out) method assumes that the oldest inventory items are sold first.

IAS 2 governs the recognition and measurement of inventory.

The Straight-Line method allocates an equal amount of depreciation expense each year.

The Balance Sheet provides information about a company's working capital by listing current assets and current liabilities.

The Current Ratio is a key indicator of working capital efficiency, measuring the ability to cover short-term liabilities.

Accounts Receivable is considered a current asset as it is expected to be converted into cash within one year.

Long-term Debt is not a component of working capital; it is a long-term liability.

Accounts Payable is classified as a current liability as it is due within one year.