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:

Environmentalism

A social and political movement that seeks to protect and improve the health of the environment through advocacy for policies reducing negative human impact.

Communication

The process of exchanging information, ideas, thoughts, and feelings through speaking, writing, or other mediums.

Environmental Pricing Strategy

Pricing methods that incorporate environmental costs, encouraging sustainable consumer behavior and product design.

Corporate Accountability

The responsibility of corporations to be answerable for their actions and decisions, particularly regarding their impact on society and the environment.