Credit Sales ____ the Amount of Working Capital Needed by the Business

question 63

Multiple Choice

Credit sales ____ the amount of working capital needed by the business doing the selling.

• A) augment
• B) decrease
• C) increase
• D) offset

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Definitions:

ABC Analysis

A method for classifying inventory items based on their importance, such as their sales volume or value, to prioritize management focus.

On-Hand Inventory

The amount of inventory physically present and immediately available in a warehouse or location at any given time.

Annual Dollar Volume

The total amount of money a product or service generates in sales over the period of a year.

Inventory Types

Categories of inventory such as raw materials, work-in-progress, finished goods, and maintenance, repair, and operations (MRO) supplies.