A Company with Working Capital of $720,000 and a Current

question 64

Multiple Choice

A company with working capital of $720,000 and a current ratio of 2.2 pays a $125,000 short-term liability. The amount of working capital immediately after payment is

• A) $845,000
• B) $595,000
• C) $720,000
• D) $125,000

Recognize the importance of critical thinking attributes such as open-mindedness and mindfulness.

Understand the impact of biases and heuristics on decision-making.

Grasp the concept of loss aversion and related cognitive biases.

Understand the role of legislation in addressing environmental issues.

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Definitions:

Polychlorinated Biphenyls

A group of toxic chemical compounds that are harmful to the environment and human health, used in various industrial applications.

Liver Damage

Harm to the liver that impairs its ability to function properly, often caused by diseases, alcohol abuse, or certain medications.

Skin Cancer

A type of cancer that forms in the tissue of the skin, caused by the abnormal and uncontrolled growth of skin cells, often due to excessive sun exposure.

Chronic Hunger

A persistent condition where individuals do not intake sufficient calories for an extended period, leading to long-term health issues and malnutrition.