A Firm Starts Its Year with Positive Net Working Capital

question 33

Multiple Choice

A firm starts its year with positive net working capital.During the year,the firm acquires more short-term debt than it does short-term assets.This means that

• A)the ending net working capital might be positive,negative,or equal to zero.
• B)both accounts receivable and inventory decreased during the year.
• C)the beginning current assets were less than the beginning current liabilities.
• D)accounts payable increased and inventory decreased during the year.
• E)the ending net working capital will be negative.

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Definitions:

Job Evaluation Method

A systematic process for determining the relative worth of jobs within an organization by analyzing their duties, responsibilities, and requirements.

Compensable Factors

Elements of a job that are used to determine appropriate compensation, such as skill level, effort, responsibility, and working conditions.

Skills

Abilities and expertise that individuals possess, which enable them to perform tasks effectively.

Responsibilities

Duties or tasks that an individual or organization is expected to handle or carry out.