At the Beginning of the Year,a Firm Has Current Assets

question 18

Multiple Choice

At the beginning of the year,a firm has current assets of $420 and current liabilities of $380. At the end of the year,the current assets are $500 and the current liabilities are $410. What is the change in net working capital?

• A) -$80
• B) -$50
• C) $0
• D) $50
• E) $80

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Definitions:

Standard Wage Rate

The predefined hourly rate paid to employees for their labor, often based on industry standards, experience, and job role.

Direct Labour Hours

The total number of hours worked by employees that are directly involved in the production process of goods or services.

Standard Wages

Predetermined rates of pay for specific tasks or jobs, used in budgeting and variance analysis.

Standard Hours Allowed

The predetermined amount of time that should be required to complete a specific task or produce a certain amount of goods.