Which One of the Following Will Increase Net Working Capital

question 414

Multiple Choice

Which one of the following will increase net working capital? Assume that the current ratio is greater than 1.0.

• A) Using cash to pay an accounts payable.
• B) Using cash to pay a long-term debt.
• C) Selling inventory at cost.
• D) Collecting an accounts receivable.
• E) Using a long-term loan to buy inventory.

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Definitions:

European Colonization

The process by which European countries established control over territories across the world, especially from the 16th to the 20th century.

Pacific Islands

A geographic region of the Pacific Ocean comprising various island groups, including Polynesia, Micronesia, and Melanesia.

Oceanic Societies

Refers to the diverse cultures and peoples living on the islands within the Pacific Ocean, known for their rich maritime traditions and artistic expressions.

Art Forms

Pertains to the various methods and structures through which artistic expression is realized, such as painting, sculpture, music, dance, and literature.