A Payment on Account Has No Effect on Working Capital

question 163

True/False

A payment on account has no effect on working capital but will increase the current ratio if it is already greater than 1.0.

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Definitions:

High-context

A communication style where much of the information is understood through context, non-verbal cues, and between-the-lines reading, common in many Asian and Middle Eastern cultures.

Pluralism

A condition or system in which multiple distinct groups, cultures, or entities coexist within a society or organization.

Ethnocentrism

The belief in the superiority of one's own ethnic group or culture, often accompanied by a devaluation of other cultures.

Communication Style

The characteristic way in which an individual or organization expresses ideas and exchanges information with others.