A Firm Starts Its Year with a Positive Net Working

question 264

Multiple Choice

A firm starts its year with a positive net working capital. During the year, the firm acquires more short-term debt than it does short-term assets. This means that:

• A) The ending net working capital will be negative.
• B) Both accounts receivable and inventory decreased during the year.
• C) The beginning current assets were less than the beginning current liabilities.
• D) Accounts payable increased and inventory decreased during the year.
• E) The ending net working capital can be positive, negative, or equal to zero.

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Definitions:

Organizational Culture

The shared values, beliefs, and practices that characterize an organization and influence its members' behavior.

Management Practices

The array of techniques, strategies, and approaches employed by managers to effectively lead and run an organization.

Flexible Work Arrangements

Employment terms that allow employees to vary their work hours, locations, or schedules to better accommodate personal needs while meeting business demands.

Long Work Hours

Extended periods spent working beyond the standard workday, which can impact health, well-being, and work-life balance.