Which of the Following Is a Net Working Capital Decision

question 112

Multiple Choice

Which of the following is a net working capital decision variable in the current period?

• A) The current maturities of long-term debt.
• B) Financing associated with a construction program that will be funded with the proceeds of a long-term security issue after the project is completed.
• C) The use of short-term debt to finance long-term assets.
• D) Purchasing inventory needed to meet current demand on credit.
• E) None of the above.

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Definitions:

Acquiring Asset

This term involves obtaining control of another company's asset through purchase or merger, enhancing the buyer's resources and capabilities.

Rate Of Return

A financial metric used to measure the amount of return on an investment relative to the investment's cost.

Total Assets

The sum of all current and non-current assets owned by a company, showing the total value of what a company owns or controls.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, reflecting wear and tear or obsolescence.