Which One of the Following Will Decrease Net Working Capital

question 13

Multiple Choice

Which one of the following will decrease net working capital of a firm?

• A)a decrease in accounts payable
• B)an increase in inventory
• C)a decrease in accounts receivable
• D)an increase in the firm's checking account balance
• E)a decrease in fixed assets

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Definitions:

Price Level

The price level is a measure of the average prices of goods and services in the economy, indicating the purchasing power of money.

Real Output

Measure of economic output adjusted for price changes; refers to the quantity of goods and services produced in an economy.

Stagflation

A situation in an economy where the inflation rate is high, economic growth rate slows, and unemployment remains steadily high.

Oil Prices

The cost per barrel of crude oil as determined by global supply and demand factors.