Which One of the Following Will Increase Net Working Capital

question 61

Multiple Choice

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

• A)using cash to pay a trade payables
• B)using cash to pay a long-term debt
• C)selling inventory at cost
• D)collecting a trade receivables
• E)using a long-term loan to buy inventory

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Definitions:

Evolutionary Perspective

A theoretical approach that explains psychological traits as adaptations evolved to solve recurrent problems in human ancestral environments.

Adaptive Environments

Spaces designed to change according to the needs of the user or as per environmental conditions, improving comfort and functionality.

Taste Aversions

A learned avoidance of a particular food or drink because it has been associated with an unpleasant or nauseating experience.

Classical Conditioning

A learning process that occurs through associations between an environmental stimulus and a naturally occurring stimulus.