Which One of These Will Decrease Net Working Capital

question 4

Multiple Choice

Which one of these will decrease net working capital?

• A) Cash sale of inventory at a loss
• B) Receipt of a cash payment on account from a customer
• C) Cash payment of an account payable
• D)Cash sale of inventory at cost

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Definitions:

Polyamides

Synthetic polymers made by the linkage of amino acids or by the polymerization of monomers with amide bonds, used in textiles and plastics.

Polymer

Large molecules made up of repeating structural units known as monomers.

Phosgene

A highly toxic and reactive compound with the formula COCl2, used as a chemical intermediate in the production of pharmaceuticals and pesticides.

Polycarbonates

A group of thermoplastic polymers containing carbonate groups in their chemical structures, known for their durability and used in the manufacture of eyewear, DVDs, and bulletproof glass.