Net Working Capital Decreases When

question 41

Multiple Choice

Net working capital decreases when:

• A)a new 3-year loan is obtained with the proceeds used to purchase inventory.
• B)a credit customer pays his or her bill in full.
• C)depreciation increases.
• D)a long-term debt is used to finance a fixed asset purchase.
• E)a dividend is paid to current shareholders.

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Definitions:

Intracranial Pressure

Refers to the pressure within the skull, affecting the brain tissue and cerebrospinal fluid.

Abbreviation

A shortened form of a word or phrase used to simplify writing and speaking.

Peripheral Nervous System

The portion of the nervous system that exists outside the brain and spinal cord, responsible for transmitting sensory information to the central nervous system and carrying motor commands to muscles and organs.

Pns

Abbreviation for Peripheral Nervous System, which includes nerves and ganglia outside of the brain and spinal cord.