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

question 87

Multiple Choice

Which one of the following will cause a reduction in the NWC 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.

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Definitions:

Knowledge Of Falsity

Awareness that a particular statement or representation is false, which can be relevant in cases of fraud or deceit.

Intention To Deceive

refers to the deliberate act of misleading or concealing the truth in order to gain an unfair advantage over someone else.

Restatement

A clarification or modification made to an existing statement or document to correct or update it.

Materially Different Meanings

Phrases or terms used in legal or contractual contexts that significantly alter the interpretation or understanding from their common usage.