Which One of the Following Will Increase Net Working Capital

question 55

Multiple Choice

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

• A)paying a supplier for a previous purchase
• B)paying off a long-term debt
• C)selling inventory at cost
• D)purchasing inventory on credit
• E)selling inventory at a profit on credit

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Definitions:

Intellectual Images

Visual representations in the mind that are used for processing and understanding complex ideas or concepts that are not immediately present to the senses.

Working Memory

A brain-based system characterized by its limited ability to retain information temporarily, making it accessible for processing.

Limited Capacity

Refers to the finite cognitive resources available for processing information or performing tasks.

Sensory Memory

The first step in the information processing system in which stimuli are stored for a brief moment in its original form to enable it to be processed.