Which One of the Following Will Increase Net Working Capital

question 31

Multiple Choice

Which one of the following will increase net working capital? Assume the current ratio is positive.

• A)Using cash to pay an accounts payable
• B)Using cash to pay a long-term debt
• C)Selling inventory at cost
• D)Collecting an accounts receivable
• E)Using a long-term loan to buy inventory

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Definitions:

Major Organic Product

The predominant substance produced in an organic chemical reaction, often the target molecule of synthetic interest.

Inorganic Ester

A compound formed by the replacement of the hydrogen of an acid by a metal or by an organic radical in non-carbon-based acids.

Structures

The arrangement or organization of parts to form a whole, often referring to the molecular geometry or architecture in chemistry.

Nitrate Ester

An organic compound containing a nitrate group bonded to an oxygen atom of an alcohol, often used in explosives and propellants.