The Following Items Are Components of a Firm's Balance Sheet

question 86

Multiple Choice

The following items are components of a firm's balance sheet. How much is the firm's working capital (net working capital) ?

• A)$14,500
• B)$ 2,500
• C)$18,500
• D)$12,500

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Definitions:

Conditional Sales Contract

An agreement where the sale of an asset is contingent upon certain conditions, typically involving the buyer making regular payments over time. If these conditions are met, ownership of the asset transfers from the seller to the buyer.

Title To The Goods

The legal right to own, possess, or sell a particular set of goods or merchandise, often involved in transactions and disputes.

Consumer Demand

The desire and willingness of consumers to purchase goods and services at given prices.

Credit Periods

The span of time businesses allow customers to pay off the amount due for the purchase of goods or services.