What Will Be the Change in Net Working Capital If

question 26

Multiple Choice

What will be the change in net working capital if you observe the following changes in current assets and current liabilities? I.Current assets increase by $170,000.
II) Current liabilities decrease by $60,000.

• A) Increase by $110,000
• B) Increase by $230,000
• C) Decrease by $110,000
• D) Decrease by $230,000

---

Definitions:

Depreciation Expense

The method of distributing the expense of a physical asset across its serviceable duration, accounting for depreciation or becoming outdated.

Depreciation

The method of allocating the cost of a tangible asset over its useful life.

Sarbanes-Oxley Act

A U.S. law enacted in 2002 to protect investors by improving the accuracy and reliability of corporate disclosures, following major financial scandals.

Financial Reports

Documents that detail the financial health and performance of a business, including balance sheets, income statements, and cash flow statements.