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2 Which one of the following will decrease the net working capital of a firm? A. Obtaining a three-year loan and using the proceeds to
2 Which one of the following will decrease the net working capital of a firm? A. Obtaining a three-year loan and using the proceeds to buy inventory B. Collecting a payment from a credit customer E C. Obtaining a five-year loan to buy equipment D. Selling inventory at a profit E. Making a payment on a long-term debt 3. Which one of the following statements concerning market and book values is correct? A. The market value of accounts receivable is generally higher than the book value of those receivables. B. The market value tends to provide a better guide to the actual worth of an asset than does the book value. C. The market value of fixed assets will always exceed the book value of those assets. D. Book values represent the amount of cash that will be received if an asset is sold. E. The current book value of equipment purchased last year is equal to the initial cost of the equipment
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