A Firm Paid Out a Dividend of $700,000 and Repaid

question 45

Multiple Choice

A firm paid out a dividend of $700,000 and repaid $1,000,000 notes payable (due for 90 days.) The net effect of these transactions on the firm's net working capital is:

• A)decrease of $1,700,000
• B)decrease of $1,000,000
• C)decrease of $700,000
• D)decrease of $300,000

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Definitions:

Population

The total number of inhabitants constituting a particular race, class, species, or area.

Sample

A subset of individuals from a larger population, selected to represent that population in a study or experiment.

Random Assignment

A method used in experiments where participants are allocated to different groups in a way that every participant has an equal chance of being assigned to any group.

Random Sample

A method of selecting a sample from a population in which each member has an equal chance of being chosen.