Which Changes Would Increase a Firm's Net Working Capital, All

question 43

Multiple Choice

Which changes would increase a firm's net working capital, all other things remaining constant?

• A) increase in debtors
• B) increase in creditors
• C) decrease in inventories
• D) all of the above

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Definitions:

Midrange

The statistical measure calculated as the mean of the highest and lowest values in a data set, providing a simple estimation of the data’s central tendency.

Arithmetic Mean

The average of a set of numerical values, calculated by adding them together and then dividing by the number of values.

Largest Values

The highest numbers or quantities in a data set, often used in statistical analysis to determine the upper extremities.

Outlier

A data point that significantly differs from other observations in a data set, often indicating variability in a measurement or a novel discovery.