​Which of the Following Decreases the Firm's Net Working Capital

question 19

Multiple Choice

​Which of the following decreases the firm's net working capital?

• A) ​distributing a stock dividend
• B) ​paying accrued wages
• C) ​selling inventory on credit
• D) ​increasing the allowance for doubtful accounts

---

Definitions:

Phi Phenomenon

The Phi Phenomenon is the optical illusion of perceiving continuous motion between separate objects viewed rapidly in succession, foundational in the study of motion perception.

Implicit Memory Effect

The implicit memory effect refers to the influence of previous experiences on performance of a task without conscious recollection of those experiences.

Sequestering Effect

A process in which carbon and other substances are removed from the atmosphere and stored in trees, plants, or the ocean, often discussed in the context of mitigating climate change.

Primacy Effect

The inclination to recall data from the start of a list more accurately than the details following it.