Which One of the Following Will Increase Net Working Capital

question 57

Multiple Choice

Which one of the following will increase net working capital? Assume that the current ratio is greater than 1.0.

• A)using cash to pay an accounts payable
• B)uing cash to pay a long-term debt
• C)selling inventory at cost
• D)collecting an accounts receivable
• E)using a long-term loan to buy inventory

---

Definitions:

On-the-job Training

A method of skill development where employees learn and are trained while they are performing their jobs, often under the supervision of more experienced staff.

New Managers

Individuals who have recently assumed managerial roles, responsible for planning, directing, and overseeing the operations and employees in their specific areas.

Seminars

Educational meetings or sessions in which participants engage in discussions or receive expert knowledge on a particular topic.

Role-playing

A method of learning or training involving the acting out of roles to simulate real-life situations for practice or problem-solving purposes.