Which One of the Following Will Decrease the Net Working

question 59

Multiple Choice

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

• A) Selling inventory at a profit
• B) Collecting an accounts receivable
• C) Paying a payment on a long-term debt
• D) Selling a fixed asset for book value
• E) Paying an accounts payable

---

Definitions:

Manufacturing

The process of producing goods by transforming raw materials into finished products, using labor, machinery, and chemical processing.

Scientific Management

A theory of management that analyzes and synthesizes workflows to improve economic efficiency, especially labor productivity, pioneered by Frederick Taylor.

Scientific Management

A management theory focusing on improving efficiency and labor productivity through scientific studies of tasks.

Frederick W. Taylor

An American mechanical engineer who is considered the father of scientific management, focusing on efficiency improvement through the analysis and optimization of workflow.