An Increase in ________ Would Increase Net Working Capital

question 149

Multiple Choice

An increase in ________ would increase net working capital.

• A) plant and equipment
• B) accounts payable
• C) accounts receivable
• D) both B and C

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Definitions:

Full Disclosure

The principle that requires a company to provide all necessary information in its financial statements to ensure they are complete and accurate.

Historical Cost

The original monetary value of an asset or investment, without adjusting for inflation or appreciation over time.

Revenue Recognition

The accounting principle that determines the specific conditions under which income becomes realized as revenue.

Feedback Value

The information obtained from assessing a decision or process that is used to make improvements or adjustments.