Other Things Held Constant, Which of the Following Will Cause

question 45

Multiple Choice

Other things held constant, which of the following will cause an increase in net operating working capital?

• A) Cash is used to buy marketable securities.
• B) A cash dividend is declared and paid.
• C) Merchandise is sold at a profit, but the sale is on credit.
• D) Missing inventory is written off against retained earnings.

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Definitions:

Real Property

Refers to land and any permanent structures attached to it, such as buildings or houses.

Tangible Personal Property

Physical items owned by an individual or entity, such as furniture, vehicles, and electronics, excluding real estate.

Real Property

Land and anything permanently attached to it, such as buildings, fences, and natural resources, recognized as a form of tangible assets.

Immovable Property

Property that cannot be moved, such as land and anything permanently affixed to it, like buildings.