There Is Evidence That the Recession Is Coming to an End

question 311

Multiple Choice

There is evidence that the recession is coming to an end for Intelligent Engine Company. New orders are coming in at a steady pace, and management is confident that new contracts will take them through the next couple of years. The company has started investing again, but not in people. Employees total the same as when the company and its competitors faced their lowest revenues of the decade. Due to __________________ , the company is producing more product and services with less people.

• A) the lack of skilled labor
• B) new competition
• C) social changes
• D) technological advancement

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Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity and operational efficiency.

Current Liabilities

Short-term financial obligations that are due to be paid within one year or within the business's operating cycle.

Current Assets

Short-term resources that are expected to be converted into cash or used up within one year or within the operating cycle, whichever is longer.

End-Of-Period Processing

The procedures undertaken at the close of a financial reporting period to prepare accounts for financial reporting.