Other Things Held Constant, Which of the Following Will Cause

question 80

Multiple Choice

Other things held constant, which of the following will cause an increase in working capital?

• A) Cash is used to buy marketable securities.
• B) A cash dividend is declared and paid.
• C) Merchandise is sold at a profit, but the sale is on credit.
• D) Long-term bonds are retired with the proceeds of a preferred stock issue.
• E) Missing inventory is written off against retained earnings.

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