Question: Which of the following will decrease working capital? a.) Purchase of merchandise on credit b.) Collection of accounts receivable c.) Purchase of a new computer

Which of the following will decrease working capital?

a.) Purchase of merchandise on credit

b.) Collection of accounts receivable

c.) Purchase of a new computer with cash

d.) Payment of salaries payable

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

ACC244-Financial Accounting FALL 2019 Ch10 & 11-Graded Homework Assignment 1. How would you best categorize in the 2016 financial statements the $2.7 million in unexpired and unredeemed gift...

Q:

Which of the following will decrease working capital? a. Purchase of a new computer with cash b. Collection of accounts receivable c. Payment of salaries payable d. Purchase of merchandise on credit

Q:

Q10. Quick Computing installed its previous generation of computer chip manufacturing equipment 3 years ago. Some of that older equipment will become unnecessary when the company goes into production...

Q:

Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Which of the following would not be counted as...

Q:

Please identify the effect if Sam Company issued additional shares of common stock? wered 52.00 son Select one: A earnings per share increased B debt-to-equity ratio increased C. earnings per share...

Q:

Working Capital Current Ratio Inventory Turnover Days Sales in Inventory Accounts Receivable Turnover 1 Average Collection Period Autoveo R File Home Insert RS Arial Paste BU Williams Sonoma,...

Q:

look at the picture for the question and Step - by - Step Guide to Solving Cash Flow Problems using the Indirect Method Step 1 : Prepare the Basic Framework Start with Net Income: Begin the cash flow...

Q:

Statement of Cash Flows The following is a list of the items for Lombardo Company's 2019 statement of cash flows: a. depreciation expense, $4,100 b. proceeds from sale of land, $5,500 c. payment of...

Q:

1. Assume the current ratio for Allegheny Supply Co. is 2 to 1. If the company purchased supplies on credit, the effect of this transaction is to a.increase the current ratio. b.decrease the current...

Q:

The following information was obtained from analysis of selected accounts of Orlando Company for the year ended December 31, 2002. Instructions: From the information given, prepare a statement of...

Q:

With knowledge of gender and sociology, please read this excerpt and explain why Lady Saw and other female entertainers have not been so successful in their careers, as their male counterparts in...

Q:

Instead of using regulations to achieve the 20 percent reduction in emissions discussed in the preceding problem, suppose the EPA requires each of the five emitters to pay a fee of $450 for each ton...

Q:

s it compulsory for a c - corporations to declare dividends from corporate profits in order to satisfy common stockholders? ( 2 ) . Why might an investor choose to buy a corporate bond instead of a...

Q:

Recall that while a lock is only either held or free, the value of a semaphore can increment and decrement to different integer values. What advantages does that provide over locks? ( Hint: recall...