If the Following Facts Were Known, Which One Would Strengthen

question 167

Multiple Choice

If the following facts were known, which one would strengthen the argument that a company would be able to meet its current financial obligations?

• A) The level of accounts payable is high.
• B) Liabilities exceed assets.
• C) The company currently has a negative cash flow.
• D) The company needs to increase the number of customers it serves.
• E) Assets exceed liabilities.

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Definitions:

Sale Price

The actual price at which an item or service is sold to the consumer, often reduced from its original or list price.

New Furniture

Recently manufactured items intended to support various human activities such as seating, eating, and sleeping.

Opportunity Cost

The value of the best alternative forgone where a choice needs to be made between several mutually exclusive alternatives.

Aggregate Income

The total amount of income earned by all individuals or entities within an economy.