What Happens to a Firm's Net Worth as It Uses

question 75

Multiple Choice

What happens to a firm's net worth as it uses cash to repay accounts payable?

• A)net worth increases.
• B)net worth decreases.
• C)net worth remains constant.
• D)net worth decreases temporarily, until cash is replenished.

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Definitions:

Functional Departmentation

The process of organizing a company's structure based on specialized functions such as marketing, finance, or human resources.

Sales Reps

Individuals who are employed to sell products and services for a company.

Sales Manager

A professional responsible for directing and overseeing a team of salespeople, setting sales goals, and developing strategies to achieve those goals.

Consumer Goods

Consumer goods are products bought for personal or household use, intended for direct consumption or use by the end consumer.