A fiRm Starts Its Year with a Positive Net Working

question 54

Multiple Choice

A firm starts its year with a positive net working capital.During the year, the firm acquires more short-term debt than it does short-term assets.This means that:

• A)the ending net working capital will be negative.
• B)both accounts receivable and inventory decreased during the year.
• C)the beginning current assets were less than the beginning current liabilities.
• D)trade payables increased and inventory decreased during the year.
• E)the ending net working capital can be positive, negative, or equal to zero.

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Definitions:

Subliminal Message

A signal or message designed to pass below the normal limits of perception, not consciously perceived but able to influence thoughts or behavior.

Absolute Threshold

The minimum intensity of a stimulus that is required to be consciously detected 50% of the time by a sensory system, essentially the lowest level of detectable sensation.

Unconscious

The part of the mind that contains thoughts, feelings, desires, and memories that are not within our conscious awareness, but influence our behavior.

Background Music

Music played in a space primarily to enhance its atmosphere and not intended to be the focus of active listening.