Which One of the Following Will Decrease Net Working Capital

question 41

Multiple Choice

Which one of the following will decrease net working capital of a firm?

• A) A decrease in accounts payable
• B) An increase in inventory
• C) A decrease in accounts receivable
• D) An increase in the firm's checking account balance
• E) A decrease in fixed assets

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Definitions:

Corporate Income Tax

A tax imposed on the net income of corporations, calculated after allowable deductions and credits.

Federal Personal Income Tax

A tax levied by the federal government on the annual income of individuals.

Federal Tax Revenue

The financial income generated by the government through taxation, which includes individual income taxes, corporate taxes, and other taxes.

Individual Income Taxes

Taxes levied by a government on the income earned by individuals or households within their jurisdiction.