Which One of the Following Would Increase the Working Capital

question 194

Multiple Choice

Which one of the following would increase the working capital of a company?

• A) Cash payment of payroll taxes payable.
• B) Refinancing a short-term note payable with a two year note payable.
• C) Cash collection of accounts receivable.
• D) Payment of a 20-year mortgage payable with cash.

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Definitions:

Supply Planning Process

The proactive method of coordinating assets to optimize the supply of products and services.

Sales Forecast

The process of estimating future sales, based on historical data, industry comparisons, and market analysis, to guide business planning.

Production Forecast

A projection of the quantity of goods or services a company plans to produce over a specific period, based on demand predictions and resource availability.

General Economic Forecast

An estimation or prediction of future economic conditions globally or within a specific region.