Which of the Following Transactions Will Cause Net Working Capital

question 170

Multiple Choice

Which of the following transactions will cause net working capital to decrease?

• A)Inventory is purchased on credit.
• B)The firm declares and pays a cash dividend.
• C)An account payable is paid with cash.
• D)Inventory is sold for cash.
• E)None of the above would cause net working capital to decrease.

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Definitions:

Operant Responding

A method of learning that occurs through rewards and punishments for behavior, emphasizing the effect of consequences on behavior in the future.

Temper Tantrums

Explosive emotional outbursts, usually in response to frustration, common among young children.

Parent-Training

Educational programs designed to teach parents effective child-rearing and behavioral management techniques.

Tantrums

Sudden, uncontrolled outbursts of anger and frustration, typically seen in children.