Which One of the Following Will Decrease the Net Working

question 59

Multiple Choice

Which one of the following will decrease the net working capital of a firm? Assume the current ratio is greater than 1.0.

• A)selling inventory at cost
• B)collecting payment from a customer
• C)paying a payment on a long-term debt
• D)selling a fixed asset for book value
• E)paying a supplier for the purchase of an inventory item

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Definitions:

Real GDP

Gross Domestic Product adjusted for inflation, providing a more accurate representation of an economy's size and how it's growing over time.

Business Quarters

Divisions of a fiscal year into four three-month periods, used by companies to report financial results and forecast future performance.

Unemployment Rate

The quantity of jobless individuals in the labor force who are vigorously searching for employment.

Total Population

The entire number of people living in a particular area, region, or country.