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

question 192

Multiple Choice

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

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

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Definitions:

Independent Auditor

An external auditor who examines the financial records and business transactions of a company to ensure accuracy and compliance with accounting standards.

Financial Analyst

A professional responsible for examining financial data and trends to help businesses and individuals make informed investment decisions.

Investing Activities

These activities relate to the acquisition and disposal of long-term assets and other investments not included in cash equivalents, within the statement of cash flows.

Common Stock

Common stock represents shares in a company that entitle holders to vote at shareholder meetings and receive dividends, typically possessing residual ownership in the company.