Which One of the Following Will Decrease Net Working Capital

question 41

Multiple Choice

Which one of the following will decrease net working capital of a firm?

• A) A decrease in accounts payable
• B) An increase in inventory
• C) A decrease in accounts receivable
• D) An increase in the firm's checking account balance
• E) A decrease in fixed assets

Understand the influence of external preferences on utility and allocation decisions.

Examine the role of a social welfare function in assessing the well-being of a community.

Understand the principle of willingness to pay in a networked environment and its effects on consumer decision-making.

Demonstrate knowledge of how different pricing strategies can impact consumer behavior and firm profit over the product lifecycle.

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Definitions:

Pro Forma Statements

Financial statements that project the future financial performance of a company, often used in planning and capital raising.

Aggregated Statements

These are financial statements that combine the financial data of several segments, subsidiaries, or different time periods of an organization into a single, comprehensive financial statement.

Percentage of Sales Approach

A financial planning model that estimates changes in balance sheet and income statement items as a direct percentage of changes in sales.