Which One of the Following Will Decrease the Net Working

question 59

Multiple Choice

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

• A) Selling inventory at a profit
• B) Collecting an accounts receivable
• C) Paying a payment on a long-term debt
• D) Selling a fixed asset for book value
• E) Paying an accounts payable

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Definitions:

Paradox of Voting

A situation where, despite the low probability that a single vote will affect the outcome of an election, individuals still choose to vote.

Majority Voting

A decision-making process where the option that receives more than half of the votes cast by eligible participants wins.

Median Voter

A theoretical concept suggesting that the outcome of a majority vote is likely to reflect the preferences of the median, or middle, voter when preferences are aligned along a single dimension.

Election Outcome

The result of a voting process in which a person or proposal is selected among a set of candidates or options.