Which One of the Following Actions Will Increase Net Working

question 105

Multiple Choice

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

• A) Paying a supplier for a previous purchase
• B) Paying off a long-term debt
• C) Selling inventory at cost for cash
• D) Purchasing inventory on credit
• E) Selling inventory at a profit on credit

---

Definitions:

Back Channel

A secondary or alternative route of communication that operates simultaneously with the main communication channel, often informally.

Multitasking

The ability to perform multiple tasks or activities simultaneously.

Online Business Communications

The virtual exchange of information and messages related to commercial activities, utilizing digital platforms and tools.

IM

Stands for Instant Messaging, a form of online communication that allows real-time text transmission over the internet.