Which of the Following Increases the Firm's Net Working Capital?​

question 14

Multiple Choice

Which of the following increases the firm's net working capital?​

• A) ​an increase in plant financed by retained earnings
• B) ​paying a cash dividend
• C) ​retaining earnings and increasing the firm's cash
• D) ​paying off an account payable

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Definitions:

Foreseeable Loss

Losses that could have been anticipated or predicted as a consequence of an action or inaction, relevant in determining liability.

Non Est Factum

A defense in contract law where a party claims they were mistaken about the nature of the document signed, not merely its terms.

Caveat Emptor

A Latin phrase meaning "let the buyer beware," placing the responsibility on the buyer to perform due diligence before making a purchase.

Equitable Remedy

A court-ordered action typically taken to prevent or resolve harm rather than monetary compensation, aiming to ensure fairness.