Which One of the Following Will Decrease Net Working Capital

question 30

Multiple Choice

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

• A) Selling inventory at cost
• B) Collecting payment from a customer
• C) Paying a dividend to shareholders
• D) Selling a fixed asset for less than book value
• E) Paying a supplier for prior purchases

Grasp the principles and application of the perpetual inventory system including journal entries for purchases, returns, and payments.

Comprehend the structure and components of a multiple-step income statement.

Calculate discounts and understand their effect on cash payments and purchase entries.

Recognize and record sales returns and allowances.

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Definitions:

Workforce

The group of people who are engaged in or available for work, either in a particular area or in a specific industry or occupation.

Industrial Professions

Careers associated with the manufacturing and production sectors, including roles in engineering, management, and skilled labor.

Civilian Labor Force

The sum of all civilian workers who are employed or actively seeking employment, excluding military personnel and those not seeking formal employment.

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The rights and liberties that women have to live their lives with a sense of self-determination, equality, and independence from patriarchal constraints.