Use the Following Information for Questions

question 11

Multiple Choice

Use the following information for questions
Cooney Corporation had $275,000 in current assets and $105,000 in current liabilities before borrowing $75,000 from the bank for a 6-month period.
-What effect did the borrowing transaction have on the amount of Cooney's working capital?

• A)No effect
• B)$75,000 increase
• C)$105,000 increase
• D)$75,000 decrease

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Definitions:

Normally Distributed

Describes a statistical distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.

Mathematical Equation

A statement of equality between two expressions which holds true under certain conditions.

Independent Variable

A variable in an experiment or model that is manipulated to observe its effect on the dependent variable.

Dependent Variable

A variable in experimental and statistical modeling whose value is dependent on the influence of another variable (the independent variable).