If Accounts Receivable Increase by $1,000,000, Inventory Decreases by $500,000

question 47

Multiple Choice

If accounts receivable increase by $1,000,000, inventory decreases by $500,000, and accounts payable increase by $500,000, net working capital would ________.

• A) decrease by $500,000
• B) increase by $1,500,000
• C) increase by $2,000,000
• D) experience no change

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Definitions:

Republicans

A member or supporter of the Republican Party, a major political party in the United States known for its conservative positions on economic and social issues.

Southern Slaves

Enslaved people in the southern United States, particularly in agricultural settings, pivotal to the agricultural economy before the abolition of slavery.

Plantation System

An agricultural system based on large-scale estates operated primarily for the cultivation of cash crops using forced labor, particularly notable in the American South before the Civil War.

Slavery

A system in which individuals are owned by others, denied freedom and forced to work without pay.