Which Statement Is Correct Given the Following Statement of fiNancial

question 286

Multiple Choice

Which statement is correct given the following statement of financial position information?

• A) Accounts receivable was a source of $345 cash.
• B) Inventory was a use of $398 of cash.
• C) Net working capital was a use of $408 of cash.
• D) Accounts payable was a source of $461 cash.
• E) Net working capital was a source of $514 of cash.

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Definitions:

Quantity of Output

The total amount of goods or services produced by a firm or economy over a specific period.

Total Cost

The total expenses involved in creating goods or services, encompassing both constant and changeable costs.

Average Variable Cost

The cost per unit of variable inputs divided by the total output, showing the variable cost component of producing each unit.

Average Fixed Cost

The fixed costs (costs that do not change with the level of output) of production divided by the quantity of output produced, decreasing as production increases.