Which of the following changes in working capital is least likely, given an increase in the overall level of sales?
A)an increase in inventories
B)an increase in accounts payable
C)a decrease in accounts receivable
D)a decrease in accruals

Question

Quizplus · Accepted Answer

An increase in sales typically leads to an increase in accounts receivable (not a decrease), as more customers buy on credit. Increases in inventories and accounts payable are also common to support higher sales levels, while changes in accruals are less directly related to sales levels.

Which of the Following Changes in Working Capital Is Least