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:

Population

The complete collection of people or cases that are the focus of the study.

Sample

A subset of individuals, objects, or measurements selected from a population that is used to make inferences about the overall population.

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A distinct property or attribute that has been identified or stipulated for observation or study.

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A round statistical diagram segmented into sections to represent numerical proportions.