Choice "B" is correct. Working capital (WC) increases only if current assets are increased or current liabilities are decreased. Exchanging accounts payable (current liability) for a two-year note payable (long-term liability) would decrease current liabilities and increase working capital.
Choice "d" is incorrect. This would not impact WC.
Choice "c" is incorrect. This would not have an impact on WC (decrease of both CA and CL).
Choice "a" is incorrect. This would decrease WC.
