Which of the Following Will Cause an Increase in Net

question 20

Multiple Choice

Which of the following will cause an increase in net working capital, other things held constant?

• A) a cash dividend is declared and paid.
• B) merchandise is sold at a profit, but the sale is on credit.
• C) long-term bonds are retired with the proceeds of a preferred stock issue.
• D) missing inventory is written off against retained earnings.
• E) cash is used to buy marketable securities.

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Definitions:

Herpes Zoster

The medical term for shingles, an acute viral infection of the dorsal root ganglia.

Carbuncles

Painful clusters of boils caused by bacterial infections, typically occurring on the back or neck.

Systemic Antibiotics

Antibacterial drugs that are distributed throughout the body, affecting multiple organs and systems, used to treat infections that are widespread or in hard-to-reach locations.

Carotene

Carotene is a pigment found in many plants that gives yellow and orange fruits and vegetables their color; it is a precursor of vitamin A in the human body.