An increase in sales may lead to:
A)a decrease in receivables.
B)a decrease in working capital.
C)an increase in fixed assets.
D)an increase in payables.

Name: An increase in sales may lead to: A)a decrease in receivables. B)a decrease in working capital. C)an increase in fixed assets. D)an increase in payables.
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Question

Quizplus · Accepted Answer

An increase in sales often leads to an increase in payables as the company may purchase more inventory or raw materials on credit to meet the higher demand.

An Increase in Sales May Lead To