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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.


Definitions:

Clarifying

The process of making a statement or situation less confused and more comprehensible.

Genuineness

The quality of being authentic, sincere, and honest in one's feelings and actions.

Modeling

The process of learning behaviors by observing and imitating others.

Client-centered

A psychological approach focusing on the individual's self-perception to promote mental health and personal growth.

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