Smith Corporation Entered into the Following Transactions

question 114

Multiple Choice

Smith Corporation entered into the following transactions:
Purchased inventory on account.
Collected an account receivable.
Purchased equipment using cash.
Which of the above transactions resulted in an increase in working capital?

• A)The inventory purchase on account.
• B)Collecting an account receivable.
• C)The purchase of equipment using cash.
• D)None of the transactions resulted in an increase in working capital.

---

Definitions:

Apache Resistance

The series of conflicts and battles between Apache tribes and European settlers and later the United States government, as part of the Native American resistance to colonization and settlement.

Transcontinental Railroad

A contiguous network of railroad trackage that crosses a continental landmass with terminals at different oceans or continental borders, significantly impacting economy and migration.

Desert Lands Act

A United States federal law passed in 1877 to promote the economic development of arid and semi-arid public lands of the Western states.

Chief Surveyor

A professional responsible for overseeing the surveying and mapping of land to determine boundaries, land features, and construction sites.