From the Following Choices, Select the Answer That Describes the Effect

question 184

Multiple Choice

From the following choices, select the answer that describes the effect on working capital as a result of the transaction.
-Paid cash for supplies

• A)Working capital will increase
• B)Working capital will decrease
• C)Working capital will not change

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Definitions:

LIBOR

The London Interbank Offered Rate, previously a benchmark interest rate at which major global banks lend to one another.

Bankers' Acceptances

Short-term debt instruments issued by a company that is guaranteed by a commercial bank, commonly used in international trade.

Brokers' Calls

The interest rate charged by banks on loans extended to brokerage firms for the purpose of funding clients' margin accounts.

Residual Claimant

An individual or entity entitled to a share of a company's assets only after all debts and other obligations have been met in the event of liquidation.