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:

Tangible Resources

Physical and material assets owned by a company, such as buildings, machinery, and inventory, which can be seen and quantified.

Technical Skills

These are abilities and knowledge in a specific domain that enable individuals to perform specific tasks proficiently, often related to practical tasks and technology use.

Human Skills

The ability to relate to other people

Human Capital

People’s skills, knowledge, experience, and general attributes.