Which of the Following Would Not Cause an Increase in Net

question 65

Multiple Choice

Which of the following would not cause an increase in net operating working capital?

• A) Inventory increases.
• B) Accounts receivable increases.
• C) Short-term investments increase.
• D) Accounts payables decrease.
• E) Accruals decrease.

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Definitions:

Cost of Goods Manufactured

Refers to the total production cost incurred by a company to manufacture products in a given period, including raw materials, labor, and overhead costs.

Sales

Sales refer to the total revenue earned from goods or services sold by a company during a specific period.

Variable Cost

Costs that vary directly with the level of production or service delivery, such as raw materials and direct labor.

Work in Process Inventory

Inventory of unfinished goods that are still in the process of production, accounting for materials, labor, and overhead.