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Which of the Following Will Cause an Increase in Net

Question 62

Multiple Choice

Which of the following will cause an increase in net working capital, other things held constant?


A) A cash dividend is declared and paid.
B) Merchandise is sold at a profit, but the sale is on credit.
C) Long-term bonds are retired with the proceeds of a preferred stock issue.
D) Missing inventory is written off against retained earnings.
E) Cash is used to buy marketable securities.

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