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.

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