Which of the Following Will Decrease Working Capital

question 73

Multiple Choice

Which of the following will decrease working capital?

• A)Collection of accounts receivable
• B)Purchase of a new computer with cash
• C)Payment of salaries payable
• D)Purchase of merchandise on credit

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Learn how to assign and manage section divisions in presentations.

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Definitions:

Budgeting

The process of creating a plan to spend your money, allowing you to determine in advance whether you will have enough funds to achieve your financial goals.

Activity Variance

The discrepancy observed between a business's estimated activities costs or resources and the actual expenses or usage.

Net Operating Income

Represents the total profit of a business after operating expenses are subtracted from gross profit.

Personnel Expenses

Costs associated with the compensation and benefits of a company's employees, including wages, salaries, bonuses, and benefits.