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:

Descriptive Statistics

Statistical methods that summarize and organize characteristics of data sets, such as mean, median, mode, and range.

Variability

The extent to which data points in a statistical distribution or data set diverge from the average or mean value.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how spread out the values are from the average.