Which of the Following Actions Will Cause a Firm's Net

question 32

Multiple Choice

Which of the following actions will cause a firm's net working capital to decrease?

• A) The firm relaxes its credit policy.
• B) The firm increases its usage of accruals.
• C) The firm pays off a short-term bank loan with cash.
• D) None of the options will cause a firm's net working capital to decrease.

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Definitions:

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Reduced Cholesterol

A decrease in the levels of cholesterol in the bloodstream, which can lower the risk of heart disease.