Which One of the Following Will Cause a Reduction in the Net

question 58

Multiple Choice

Which one of the following will cause a reduction in the net working capital turnover ratio all else held constant?

• A)a decrease in sales.
• B)an increase in average payables.
• C)an increase in average inventory.
• D)an increase in the average cash balance.

Understand the purpose and process of closing entries in the accounting cycle.

Identify the correct order of accounts to close.

Analyze the impact of closing entries on temporary and permanent accounts.

Differentiate between temporary and permanent accounts.