​Which of the Following Increases Net Working Capital

question 45

Multiple Choice

​Which of the following increases net working capital?

• A) ​an increase in plant financed by issuing bonds
• B) ​an increase in bonds and a decrease in equity
• C) ​an increase in cash and a decrease in accounts receivable
• D) an increase in preferred stock and a decrease in accounts payable​

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Definitions:

Scatterplot

An illustrative technique in statistics that depicts the correlation between two distinct sets of data using a collection of points on a two-dimensional graph.

Data Set

A collection of related sets of information that are composed of separate elements but can be manipulated as a unit by a computer.

Residuals

The differences between observed values and the values predicted by a model in statistical analysis.

Scatterplots

Graphical representations using dots to show the relationship between two variables, each dot representing an observation in the dataset.