A Firm Has Current Assets of $25,000, Long Term Assets

question 60

Multiple Choice

A firm has current assets of $25,000, long term assets of $100,000, long term liabilities of $50,000, and $50,000 in shareholders' equity. What is its net working capital?

• A) zero
• B) $50,000
• C) $100,000
• D) $25,000

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Definitions:

Leisure

The time individuals spend away from work or productive activities, often used for relaxation or recreational activities.

Wage Rate

The fixed amount of money or compensation paid to an employee by an employer in exchange for work performed.

Labor Income

Earnings derived from work or employment, including wages, salaries, and other compensation.

Lump Sum Payment

A lump sum payment is a large payment made in one single payment instead of broken down into installments.