Which of the Following Actions Will Cause a Firm's Net

question 114

Multiple Choice

Which of the following actions will cause a firm's net working capital to increase?

• A)The firm uses more trade credit.
• B)The firm increases its inventory in anticipation of seasonal sales.
• C)The firm pays off a short-term bank loan with cash.
• D)All of the options will cause a firm's net working capital to increase.

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Definitions:

Left Atrium

One of the four chambers of the heart, receiving oxygen-rich blood from the lungs and pumping it into the left ventricle.

Pulmonary Artery

The blood vessel that carries deoxygenated blood from the right ventricle of the heart to the lungs for oxygenation.

Postcava

Another term for the inferior vena cava, the large vein that carries deoxygenated blood from the lower body to the heart.

Radial Vein

A vein located in the forearm that is part of the venous system returning blood to the heart.