Which One of the Following Will Increase Net Working Capital

question 55

Multiple Choice

Which one of the following 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
• D)purchasing inventory on credit
• E)selling inventory at a profit on credit

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Definitions:

Soldiers

Individuals who serve in an army and are trained to fight in military battles.

Propaganda

The use of biased or misleading information disseminated to influence public opinion or behavior.

Mass Media

Various mediums of communication, such as television, radio, newspapers, and the internet, that reach large audiences, influencing public opinion and culture.