Which One of the Following Will Decrease Net Working Capital

question 246

Multiple Choice

Which one of the following will decrease net working capital?

• A) An increase in accounts receivable.
• B) An increase in accounts payable.
• C) A sale of a fixed asset for cash.
• D) A sale of inventory at a profit.
• E) A decrease in accounts payable.

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Definitions:

Alfred Binet

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A method of assessing the reliability of a test by administering the same test to the same subjects at two different points in time and comparing the scores.

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The consistency and stability of a measurement over multiple occasions or different observers.