Which One of the Following Will Decrease the Net Working

question 63

Multiple Choice

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

• A)selling inventory at a profit
• B)collecting a trade receivables
• C)paying a payment on a long-term debt
• D)selling a fixed asset for book value
• E)paying a trade payables

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Definitions:

Cretinism

A condition arising from a severe deficiency of thyroid hormone in infants or young children, leading to stunted physical and mental growth.

Thyroid Hormones

Chemical substances produced by the thyroid gland, crucial for metabolism regulation and normal growth and development.

Energy Production

The process of generating electricity or other forms of energy through various methods, such as burning fossil fuels, nuclear power, or harvesting renewable resources like wind and solar power.

Protein Synthesis

The process by which cells build proteins, involving transcription of DNA into mRNA and translation of mRNA into a polypeptide chain.