Which one of the following will decrease net working capital of a firm?
A) A decrease in accounts payable
B) An increase in inventory
C) A decrease in accounts receivable
D) An increase in the firm's checking account balance
E) A decrease in fixed assets

Question

Quizplus · Accepted Answer

A decrease in accounts receivable reduces current assets, which in turn decreases net working capital.

Which One of the Following Will Decrease Net Working Capital