Working Capital Increases When ____ Decreases

question 46

Multiple Choice

Working capital increases when ____ decreases.

• A) accounts receivable
• B) inventory
• C) accounts payable
• D) cash

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Definitions:

Equilibrium Quantity

The quantity of a good or service at which supply equals demand, resulting in no net surplus or shortage in the market.

Ironing Boards

Flat, foldable boards used as a stable surface for ironing clothes and linens.

Equilibrium Quantity

The quantity of goods or services supplied that is equal to the quantity demanded at a particular price level, reaching a state of market balance.

Equilibrium Price

The economic value where the quantity of goods brought to the market equals the quantity taken by consumers.