Which One of the Following Will Decrease Net Working Capital

question 4

Multiple Choice

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

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

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Definitions:

Division Manager

An individual responsible for overseeing a specific segment or division within a company, including its performance, operations, and strategy.

Production Goal

A target set by a business or an organization regarding the amount and quality of goods or services to be produced within a certain timeframe.

Pace of Production

The rate at which goods are manufactured or produced in a given timeframe.

Production Goal

A specific target or objective related to the output of goods or services that a company aims to achieve.