Which of the Following Changes in Working Capital Will Result

question 69

Multiple Choice

Which of the following changes in working capital will result in an increase in cash flows?

• A)increase in accounts payable
• B)increase in inventories
• C)increase in accounts receivable
• D)decrease in other current liabilities

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Definitions:

Reciprocity

A mutual exchange of privileges or concessions, often between two countries, such as trade agreements or recognition of licenses.

Partnerships

A legally sanctioned business cooperation among several individuals who collectively manage the enterprise and distribute its profits.

Foreign Corrupt Practices Act

A U.S. law aimed at preventing companies from engaging in bribery and other unethical practices in foreign markets.

Legal Consequences

Legal consequences are the outcomes or penalties resulting from the application of law, such as fines, imprisonment, or other forms of legal redress.