Which One of the Following Will Increase Net Working Capital

question 414

Multiple Choice

Which one of the following will increase net working capital? Assume that the current ratio is greater than 1.0.

• A) Using cash to pay an accounts payable.
• B) Using cash to pay a long-term debt.
• C) Selling inventory at cost.
• D) Collecting an accounts receivable.
• E) Using a long-term loan to buy inventory.

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Definitions:

Numeric Scale

A sequence of numbers used to measure or rate the level of something, such as pain.

Oucher Scale

A pain rating scale designed for children, using photographs and numerical scales to quantify pain intensity.

Patient-Controlled Analgesia (PCA)

A method of pain management that allows patients to self-administer prescribed doses of pain medication through a device.

Postoperative Period

The recovery phase following surgery, involving monitoring, pain management, and care to ensure proper healing.