Use the Following Information for Questions

question 6

Multiple Choice

Use the following information for questions
Sweeney Corporation had $250,000 in current assets and $90,000 in current liabilities before borrowing $50,000 from the bank for a 3-month period.
-What effect did the borrowing transaction have on the amount of Sweeney's working capital?

• A)No effect
• B)$50,000 increase
• C)$90,000 increase
• D)$50,000 decrease

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Definitions:

Negative Reinforcement

A behavioral training technique where the removal of an undesirable or unpleasant stimulus following a particular behavior increases the likelihood of that behavior being repeated in the future.

Negative Punishment

Negative punishment, a concept in behavioral psychology, involves the removal of a desirable stimulus following an unwanted behavior, aiming to decrease that behavior's occurrence.

Positive Punishment

Adding an undesirable stimulus to decrease the likelihood of a behavior occurring again.

Operant Conditioning

A learning process where behavior is modified through reinforcement or punishment.