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:

Shirking

Shirking describes when employees underperform or exert less effort than expected because of insufficient incentives or the absence of effective monitoring.

Perfectly Inelastic

Describes a situation where the quantity demanded or supplied does not change in response to a change in price; the demand or supply curve is vertical.

Labor Supply Curve

A visual diagram that illustrates the connection between the salary provided and the amount of work employees are ready to offer.

Competitive Firm

A company operating in a market where there are many buyers and sellers, and no single entity can influence the market price.