Which One of the Following Events Increases Working Capital

question 69

Multiple Choice

Which one of the following events increases working capital?

• A)Purchase of inventory on credit
• B)Payment of an installment of notes payable
• C)Payment of sales taxes for the state
• D)Selling merchandise on credit at a profit

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Definitions:

Average Variable Costs

The sum of all costs that vary with output levels, when divided by the number of units produced.

Drones

Unmanned aerial vehicles (UAVs) capable of flying without a human pilot aboard, used for various purposes from recreation to military.

Total Variable Costs

Costs that vary directly with the level of production, including materials and labor directly involved in a company's manufacturing process.

Drones

Unmanned aerial vehicles (UAVs) used for various purposes, including surveillance, delivery, and recreational uses.