Which One of the Following Events Does Not Have Any

question 38

Multiple Choice

Which one of the following events does not have any impact on total working capital?

• A) The board of directors declares a cash dividend to be paid next month.
• B) Warranty expense is accrued.
• C) Payment of salaries previously accrued.
• D) Debt which was previously long-term matures next year.

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Definitions:

Liability

Legal responsibility for one's actions or inactions, which may result in financial restitution or penalties.

Fiduciary Duty

A legal obligation requiring one party (the fiduciary) to act solely in another party's (the beneficiary's) interest when managing the latter's assets, involving loyalty and care.

Shareholder's Legal Duties

Obligations imposed on shareholders, including acting in the best interest of the corporation and adhering to corporate laws and regulations.

Majority Shareholders

Individuals or entities that own more than half of the total shares of a corporation, giving them significant control over company decisions.