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:

Ideal Of Pluralism

The belief or doctrine that a society should accommodate and embrace a diversity of cultural, religious, and ethnic backgrounds within its political and social institutions.

Governmental Influence

The extent to which government actions or policies affect the decisions and actions of individuals or organizations.

Compete

To strive against others for the purpose of achieving something, such as a prize or a higher level of achievement, often under conditions of equal footing and rules.

Partnership

A legal form of business operation between two or more individuals who share management and profits.