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Andrew Valdez
on Dec 09, 2024

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Which one of the following will decrease net working capital?

A) An increase in accounts receivable.
B) An increase in accounts payable.
C) A sale of a fixed asset for cash.
D) A sale of inventory at a profit.
E) A decrease in accounts payable.

Net Working Capital

The gap between a firm's existing assets and its immediate liabilities, showing the company's short-term financial stability.

Accounts Receivable

Financial dues customers hold with a company for the provision of goods or services, awaiting recompense.

Accounts Payable

Money owed by a company to its suppliers or creditors for goods and services received but not yet paid for.

  • Examine the elements influencing operating cash flow, net working capital, and earnings per share.
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AA
Ahmad AlzubidiDec 12, 2024
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