Which of the Following Rules Stands True While Preparation of Schedule

Multiple Choice

Which of the following rules stands true while preparation of Schedule of changes in workingcapital?
1) An increase in current assets increases working capital.
2) An increase in current assets decreases working capital.
3) An increase in current liabilities decreases working capital.
4) An increase in current liabilities increases working capital

A) 1 and 3
B) 1 and 4
C) 2 and 4
D) 1, 2,3 and 4