1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
son4ous [18]
3 years ago
8

Net working capital increases when: Multiple Choice inventory is sold at cost. fixed assets are purchased for cash. inventory is

purchased on credit. inventory is sold at a profit. a credit customer pays for his or her purchase.
Business
1 answer:
sashaice [31]3 years ago
6 0

Answer:

d. inventory is sold at a profit

Explanation:

Net working capital increases when <u>inventory is sold at a profit</u>

Net working capital = Current Assets - Current Liabilities . Cash, Inventory and receivables are part of current assets

Hence, when inventory is sold at profit, cash received is more than decrease in inventory and hence, current asset increase and hence, working capital increases. When it is sold at cost, it remains the same. Purchase of inventory on credit will lead to same amount increase in current assets and current liabilities. Payment by customer will lead to increase in cash and decrease in accounts receivable, Hence, no impact

You might be interested in
It is less important to account for factors like warranties and durability when purchasing a
shepuryov [24]
Long-term product or b
4 0
3 years ago
Read 2 more answers
Virtually every business has variable expenses, which move up and down in tight proportion with changes in sales volume or sales
TiliK225 [7]

Answer and Explanation:

Dynamic expenses are pointed to as operating expenses that are the production cost and important to run a business.

common example of the variable cost that depends on sales volume.

  • The cost of goods sold, that is the equivalent of goods sold to consumers.
  • Commissions charged from their selling to salespersons.
  • Fees charged by a company when a customer requires a credit or debit card.

so, we say that when a business increase or decrease their sale volume, their variable cost also gets affected.

3 0
3 years ago
ynwood, Inc. produces two different products (Product A and Product X) using two different activities: Machining, which uses mac
Harrizon [31]

Answer:

$270,000

Explanation:

Calculation for the amount of Machining cost assigned to Product A

Using this formula

Machine cost=Machine hours*Activity rate

Let plug in the formula

Machine cost=1,800*$150

Machine cost =$270,000

Therefore the amount of Machining cost assigned to Product A will be $270,000

5 0
3 years ago
when the market demand curve crosses the long-run average total cost curve where average total costs are declining, the firm is
cluponka [151]

Answer: Natural monopoly

Explanation:

A natural monopoly is a form of monopoly that comee into being due to huge start-up costs and also economies of scale. A firm that has a natural monopoly may be the only producer of a particular good or service.

A natural monopoly occurs when the long-run average total cost curve is crossed by the markwt demand curve when the average total costs are still diminishing.

5 0
3 years ago
Regional economic group is defined as ________.
musickatia [10]

The answer is Regional economic integration

8 0
2 years ago
Other questions:
  • When the allocation of goods and services by a modern mixed economy is not efficient,
    10·1 answer
  • Action verbs you might use on a job application
    8·1 answer
  • Which best describes when generally occurs in financial markets
    8·2 answers
  • If a gain of $221000 is realized in the cash sale of a building having a book value of $882000, the total amount reported in the
    11·1 answer
  • At the end of April, Cavy Company had completed Job 766 and 765. According to the individual job cost sheets the information is
    9·1 answer
  • Harris Brown, the marketing manager at a small retail chain, wants to assess his firm's strengths, opportunities, weaknesses, an
    11·1 answer
  • Neeta Landscaping Company provides lawn care services to a customer and immediately receives $45. Which of the following describ
    9·1 answer
  • Robert is the sole shareholder and CEO of ABC, Inc., an S corporation that is a qualified trade or business. During the current
    15·1 answer
  • Given that the income of franchise restaurant managers is directly tied to profits and the income of the manager of the company
    14·1 answer
  • ASC 480-10 provides guidance on determining whether (1) certain financial instruments with both debt-like and equity-like charac
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!