Which One of the Following Will Increase Net Working Capital

question 119

Multiple Choice

Which one of the following will increase net working capital?

• A) A decrease in cash.
• B) An increase in accounts payable.
• C) An increase in depreciation.
• D) A profitable sale of inventory.
• E) The write-off of a bad debt.

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Definitions:

Res Ipsa Loquitur

A legal doctrine that allows for the presumption of negligence in a case where the accident occurring is the type which normally does not happen in the absence of negligence.

Product Liability

The legal liability a manufacturer or seller incurs for producing or selling a faulty product resulting in injury or harm to a consumer.

Express Warranty

A clearly stated promise or guarantee by a seller about the quality or functionality of a product.

Basis of the Bargain

The foundation or crucial terms agreed upon in a contract that are a major reason one party enters into the agreement.