Which of the Following Would Increase the Net Working Capital

question 108

Multiple Choice

Which of the following would increase the net working capital for a project? An increase in

• A) accounts receivable.
• B) fixed assets.
• C) accounts payable.
• D) common stock.

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Definitions:

Direct Labor

The wages paid to workers directly involved in the production of products or the delivery of services.

Planning Budget

A budget prepared at the beginning of the budgeting period, reflecting expected revenues and expenses based on forecasted levels of operations.

Personnel Expenses

Costs associated with employees, including wages, benefits, and taxes.

Planning Budget

A budget that outlines the income, expenses, and goals of a company or project within a specific time period, serving as a financial roadmap.