Which Changes Would Increase a Firm's Net Working Capital, All

question 52

Multiple Choice

Which changes would increase a firm's net working capital, all other things remaining constant?

• A)Decrease in inventories.
• B)Increase in accounts payable.
• C)Increase in accounts receivable.
• D)All of the above.

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Definitions:

Roller Skates

Shoes, or bindings worn on shoes, equipped with four wheels for skating on surfaces, popular as a form of recreation or sport.

Capital

The wealth, whether in money or assets, used in the production of more wealth.

Isocost Line

A graph line that shows all possible combinations of inputs that can be purchased with a given total cost.

Slope

A measure of the steepness, incline, or grade of a straight line, calculated as the ratio of the vertical change to the horizontal change between two points on the line.