Which One of the Following Will Increase Net Working Capital

question 45

Multiple Choice

Which one of the following will increase net working capital? Assume that the current ratio is greater than 1.0.

• 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:

Aldo Leopold

Renowned American author, philosopher, scientist, ecologist, forester, conservationist, and environmentalist, best known for his book "A Sand County Almanac."

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An ancient plant, now possibly extinct, that was used for various culinary and medicinal purposes in the Mediterranean region during classical antiquity.

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A situation where the majority of group members privately reject a norm but assume incorrectly that most others accept it.

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