Which one of the following will decrease the value of a firm's net working capital?
A) Using cash to pay a supplier
B) Depreciating an asset
C) Collecting an accounts receivable
D) Purchasing inventory on credit
E) Selling inventory at a loss

Question

Quizplus · Accepted Answer

Selling inventory at a loss decreases net working capital because it reduces current assets without a corresponding increase in cash or accounts receivable.

Which One of the Following Will Decrease the Value of a Firm's