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

---

Definitions:

Overweight

A condition characterized by an individual having more body fat than is optimally healthy for their height and build.

Evolutionary Approach

A perspective in various disciplines, including psychology and biology, that seeks to explain traits, behaviors, and strategies as adaptations that have evolved to solve reproductive and survival problems.

Drive-Reduction Approach

A theory in psychology that posits behavior is motivated by the desire to reduce internal tension caused by unmet biological needs, such as hunger or thirst.

Environmental Cues

External signals or stimuli that can affect behavior, emotions, or thoughts, influencing decision-making or actions based on the current context or situation.