Which One of the Following Will Cause a Reduction in the NWC

question 29

Multiple Choice

Which one of the following will cause a reduction in the NWC turnover ratio all else held constant?

• A) A decrease in sales
• B) An increase in average payables
• C) An increase in average inventory
• D) An increase in the average cash balance

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Definitions:

Fruity Odor

A smell often described as sweet and reminiscent of various fruits, sometimes indicative of medical conditions like diabetic ketoacidosis.

Excessive Cold

A condition characterized by temperatures significantly below what is considered comfortable or safe for humans.

Trunk

The main body of a person or animal excluding the limbs and head; also refers to the main stem of a tree.

Ears

Organs of hearing and balance located on either side of the head.