Other Things Held Constant, Which of the Following Alternatives Would

question 66

Multiple Choice

Other things held constant, which of the following alternatives would increase a company's cash flow for the current year?

• A) Increase the number of years over which fixed assets are depreciated for tax purposes.
• B) Pay down the accounts payables.
• C) Reduce the days' sales outstanding (DSO) without affecting sales or operating costs.
• D) Pay workers more frequently to decrease the accrued wages balance.
• E) Reduce the inventory turnover ratio without affecting sales or operating costs.

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Definitions:

Civil Penalties

Fines or sanctions imposed by a civil court on individuals or entities as a consequence of violating statutory law or regulatory requirements.

Clean Air Act

A federal law in the United States aimed at controlling air pollution and protecting air quality.

EPA

The Environmental Protection Agency, a federal agency tasked with protecting human health and the environment by enforcing regulations based on laws passed by Congress.

Corporate Debtor

A business entity that owes a debt to another party, often in a legal or financial context such as bankruptcy proceedings.