Which of the Following Represents a Common Reason for Increases

question 94

Multiple Choice

Which of the following represents a common reason for increases in net working capital with new projects?

• A) Inventory can now be held at lower levels.
• B) Accounts receivable are often not paid on time.
• C) Inventory increases more than accounts payable increase.
• D) Accounts payable must be increased.

---

Definitions:

Gasoline Prices

The cost per unit of gasoline, influenced by factors such as crude oil prices, refinery costs, taxes, and demand.

Quantity Demanded

The total amount of a good or service that consumers are willing to purchase at a given price level, at a specific point in time.

Demand

The total quantity of a good or service that consumers are willing and able to purchase at various prices during a specific time period.

Equilibrium

A state of balance in a system where supply equals demand, and there is no external force prompting change.