Which of the Following Will Decrease Working Capital

question 94

Multiple Choice

Which of the following will decrease working capital?

• A) collection of accounts receivable
• B) purchase of a new computer with cash
• C) payment of salaries payable
• D) purchase of merchandise on credit

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Definitions:

Common Stockholders

These are investors who own shares of a company's common stock, granting them voting rights and a portion of the company's profits through dividends.

Hybrid Security

A financial instrument that combines characteristics of both equity and debt securities, offering a blend of risk and return features.

Preferred Stock

A class of ownership in a corporation that has a higher claim on its assets and earnings than common stock.

Bonds

Fixed-income securities representing a loan made by an investor to a borrower, typically corporate or governmental.