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

question 6

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:

Motivational Force

The internal or external stimuli that drive an individual towards taking action or pursuing goals.

Commitment

The dedication or strong loyalty that an individual or group has toward an organization, cause, or goal.

Formula Box

A field in spreadsheet applications where you enter or edit calculations or functions to be applied to cell data.

Insertion Point

The cursor's location in a document or field where new text or data will be entered.