A Firm Has $1,800 in Fixed Assets, $400 in Net

question 90

Multiple Choice

A firm has $1,800 in fixed assets, $400 in net working capital, $200 in accounts payable, and $100 in cash. What is the amount of the current assets?

• A) $200
• B) $400
• C) $500
• D) $600
• E) $700

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Definitions:

Predict Recessions

The process of forecasting a period of economic decline across the economy, typically recognized by a decrease in GDP in two successive quarters.

GDP

Gross Domestic Product, a measure of a country's economic performance, representing the total value of all goods and services produced over a specific time period.

Exchange-Rate Effect

The impact on a country's trade balance when its currency appreciates or depreciates, affecting the price of imports and exports.

Price Level

The price level represents the average cost of goods and services across the economy at a specific point in time.