Smith Corporation Entered into the Following Transactions: • Purchased Inventory

question 92

Multiple Choice

Smith Corporation entered into the following transactions: • Purchased inventory on account.
• Collected an account receivable.
• Purchased equipment using cash.
Which of the above transactions resulted in an increase in working capital?

• A) The inventory purchase on account.
• B) Collecting an account receivable.
• C)The purchase of equipment using cash.
• D)None of the transactions resulted in an increase in working capital.

---

Definitions:

Decoding

The process of interpreting and understanding communication signals or symbols.

Abstracting

The process of summarizing or condensing a larger piece of information into a brief overview or abstract.

Indexing

A method of organizing data in a database or other system to improve search speed and efficiency.

Abstract Words

Words that represent ideas or concepts rather than tangible objects or actions, often subjective and open to interpretation.