Which of the Following Assets (If Any)are Not Part of a Firm's

question 268

Multiple Choice

Which of the following assets (if any) are not part of a firm's working capital investment?

• A)Cash
• B)Accounts receivable
• C)Inventory
• D)None of the above

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Definitions:

Sales Discount

A reduction from the usual cost of a product or service offered to customers to encourage prompt payment or increase sales.

Customers Pay

refers to the transactions where customers remit payment for goods or services received from a business.

Prepaid Freight

Costs paid by a shipper in advance for shipment of goods, indicating that the sender bears the freight charges.

Cash Discount

A reduction in the invoice price offered to buyers as an incentive for early payment.