A Company with Working Capital of $600,000 and a Current

question 12

Multiple Choice

A company with working capital of $600,000 and a current ratio of 3.25 pays a $200,000 short-term liability.The amount of working capital immediately after payment is:

• A) $400,000.
• B) $800,000.
• C) $600,000.
• D) $200,000.

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Definitions:

Situational Factors

External elements or circumstances that can influence individuals' behavior and decision-making processes.

Fundamental Attribution Error

The tendency to overemphasize personal traits and underestimate situational factors when explaining someone else's behavior.

Dispositionally

Pertaining to or resulting from one's inherent qualities of mind and character.

Self-serving Bias

A common cognitive bias where individuals attribute positive outcomes to their own actions but blame external factors for negative outcomes.