Which of the Following Alternatives Could Potentially Result in a Net

question 97

Multiple Choice

Which of the following alternatives could potentially result in a net increase in a company's free cash flow for the current year?

• A) Reducing the days-sales-outstanding ratio.
• B) Increasing the number of years over which fixed assets are depreciated.
• C) Decreasing the accounts payable balance.
• D) All of the answers above are correct.
• E) Answers a and b are correct.

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Definitions:

New Members

Individuals who have recently joined a group, organization, or community and are in the process of integrating and adjusting.

Older Workers

Individuals within the workforce who are typically considered to be near or beyond the traditional age for retirement, often facing unique challenges and stereotypes.

First In/First Out

An inventory management and valuation method where the first items produced or acquired are the first ones to be expended or sold.

Layoffs

The act of terminating employees, often for economic or business restructuring reasons, rather than individual performance issues.