Which of the Following Changes in Working Capital Is Least

question 81

Multiple Choice

Which of the following changes in working capital is least likely, given an increase in the overall level of sales?

• A)an increase in inventories
• B)an increase in accounts payable
• C)a decrease in accounts receivable
• D)a decrease in accruals

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Definitions:

Discount Rate

The discount rate that adjusts future cash flows to their current worth, accounting for the time value of money.

Investment Required

The total amount of capital needed to start or expand a business or project, encompassing all necessary expenses.

Annual Cash Inflows

The total amount of money received by a business within one fiscal year from its operations, investments, and financing activities.

Salvage Value

The estimated residual value of an asset at the end of its useful life, considered for depreciation calculations.