Which One of the Following Will Decrease the Net Working

question 51

Multiple Choice

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

• A) Selling inventory at a profit.
• B) Collecting an accounts receivable.
• C) Paying a payment on a long-term debt.
• D) Selling a fixed asset for book value.

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Definitions:

Lotion

A liquid or semi-liquid topical preparation intended for application to the skin to moisturize, protect, or medicate.

Isopropyl Alcohol

A colorless, flammable chemical compound with strong antiseptic properties, commonly used as a disinfectant and cleaning agent.

Spirometry

A test used to measure breathing capacity.

Tight Clothing

Apparel that fits very closely to the body, often stretching to conform to the body's shape.