Other Things Held Constant, Which of the Following Will Cause

question 80

Multiple Choice

Other things held constant, which of the following will cause an increase in working capital?

• A) Cash is used to buy marketable securities.
• B) A cash dividend is declared and paid.
• C) Merchandise is sold at a profit, but the sale is on credit.
• D) Long-term bonds are retired with the proceeds of a preferred stock issue.
• E) Missing inventory is written off against retained earnings.

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Definitions:

Strategic Management

The process by which an organization's leaders develop and implement plans to achieve specific goals and objectives over the long term, taking into account both internal and external environments.

Analytical Planning

The process of systematically analyzing variables in order to make informed, strategic decisions.

Bryson

Refers to a specific context or individual which requires additional information for a precise definition.

Capacity Building

The process of developing and strengthening the skills, instincts, abilities, processes, and resources that organizations and communities need to survive, adapt, and thrive.