Which of the following actions could DECREASE a firm's working capital gap?
A)increase the age of accounts receivable
B)reduce the age of accounts payable
C)increase the age of inventory
D)None of the above.

Question

Quizplus · Accepted Answer

The working capital gap is defined as current assets minus current liabilities. Increasing the age of accounts receivable, reducing the age of accounts payable, and increasing the age of inventory would all potentially increase the working capital gap rather than decrease it.

Which of the Following Actions Could DECREASE a Firm's Working