A decrease in ________ would increase net working capital.
A) accounts payable
B) accounts receivable
C) cash
D) equipment

Question

Quizplus · Accepted Answer

Accounts payable represents money owed by a company to its suppliers or creditors. When accounts payable decreases, it means the company has paid off some of its debts, which increases the amount of cash available for other uses. This increase in cash will, in turn, increase net working capital.

A Decrease in ________ Would Increase Net Working Capital