Which of the following can lead to an increase in the net working capital of a firm? A. A decrease in inventory. B. An increase in accounts receivable. C. An increase in accounts payable. D. A decrease in the checking account balance

Which of the following can lead to an increase in the net working capital of a firm? A. A decrease in inventory. B. An increase in accounts receivable. C. An increase in accounts payable. D. A decrease in the checking account balance

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 5MCQ

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Question

Which of the following can lead to an increase in the net working capital of a firm?

	A.	A decrease in inventory.
	B.	An increase in accounts receivable.
	C.	An increase in accounts payable.
	D.	A decrease in the checking account balance.

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