Which One of the Following Will Decrease the Net Working

question 91

Multiple Choice

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

• A)Selling inventory at a profit
• B)Collecting an accounts receivable
• C)Paying a payment on a long-term debt
• D)Selling a fixed asset for book value
• E)Paying an accounts payable

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Definitions:

Organisational Policy

A set of principles and rules designed to guide decisions and achieve rational outcomes within an organization.

Operating Procedures

Established methods and protocols designed to carry out operations consistently and effectively within an organization.

Employee Manuals

Documentation provided to employees by an employer outlining job duties, workplace policies, and rights and responsibilities of the workforce.

Rules

Indicate what is and what is not acceptable behaviour and often specify the outcome of breaking them.