Which One of the Following Will Decrease a Firm's Net

question 157

Multiple Choice

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

• A) an increase in the cash account balance
• B) the payment of a receivable by a customer
• C) the purchase of a fixed asset using short-term debt
• D) the acquisition of a building using long-term debt
• E) the sale of inventory for cash

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Definitions:

Hydraulic Hose

A flexible line in a hydraulic system that carries high-pressure fluid for operating various hydraulic components.

Highest Pressures

The maximum level of pressure that a system, container, or fluid can withstand safely during operation.

Spiral Wire Braid

A type of reinforcement used in hoses or cables, consisting of a spiral wrap of wire to provide strength.

ISO 32

A classification of industrial and hydraulic fluids, indicating a medium viscosity grade according to the International Standards Organization.