Which of the Following Changes in Working Capital Is Least

question 79

Multiple Choice

Which of the following changes in working capital is least likely,given an increase in the overall level of sales?

• A) An increase in inventories
• B) An increase in accounts payable
• C) A decrease in accounts receivable
• D) An increase in accounts receivable

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Definitions:

Canadian Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, calculated by Statistics Canada.

Annual Rate of Inflation

The percentage increase in the cost of goods and services over a one-year period.

Equivalent Annual Rate

The interest rate that is annualized using compounding over a given period, making it comparable across different compounding frequencies.

Rate of Production

The speed at which goods or services are produced, usually measured over a specific time period.