Which of the Following Will Cause an Increase in Net

question 62

Multiple Choice

Which of the following will cause an increase in net working capital, other things held constant?

• A) A cash dividend is declared and paid.
• B) Merchandise is sold at a profit, but the sale is on credit.
• C) Long-term bonds are retired with the proceeds of a preferred stock issue.
• D) Missing inventory is written off against retained earnings.
• E) Cash is used to buy marketable securities.

Calculate goodwill using the fair value method.

Determine the fair value of shares for NCI in the absence of an active market.

Understand the impact of preference shares not owned by the parent on NCI.

Analyze the effect of intragroup transactions on the calculation of NCI's share of subsidiary profits and retained earnings.

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Definitions:

Cognitions

The mental action or process of acquiring knowledge and understanding through thought, experience, and the senses.

Self-Actualization

The humanistic process by which people fulfill their potential for goodness and growth.

Human Functioning

The range of human activities and capabilities, including physical, cognitive, emotional, and social aspects of life and well-being.

Humanists

Individuals who emphasize the value and goodness of human beings, preferring critical thinking and evidence over established doctrine or faith.