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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the extent to which a concept, conclusion or measurement is well-founded and corresponds accurately to the real world.

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