If a Firm Is Growing and Expanding Its Accounts Receivable

question 76

Multiple Choice

If a firm is growing and expanding its accounts receivable and inventories faster than its current operating liabilities its cash flow from operation will normally be:

• A) greater than net income
• B) less than net income
• C) greater than the change in working capital from operations
• D) greater than the change in cash.

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Definitions:

Free Black Workers

Denotes African American individuals who were not enslaved and worked for wages or owned their businesses, notably before and after the Civil War in the United States.

Fugitive Slave Act

Legislation passed in 1850 that required the return of escaped slaves to their owners and imposed penalties on anyone who aided in their flight, intensifying antislavery sentiments.

Escaped Slaves

Individuals who fled from slavery to seek freedom, often traveling long distances and facing significant dangers.

Arrest

The act of legally detaining a person by authorities on grounds of suspected or proven involvement in criminal activity.