Which of the Following Actions Will Cause a Firm's Net

question 86

Multiple Choice

Which of the following actions will cause a firm's net working capital to decrease?

• A)The firm relaxes its credit policy.
• B)The firm increases its usage of accruals.
• C)The firm pays off a short-term bank loan with cash.
• D)None of these will cause a firm's net working capital to decrease.

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Definitions:

DSM-5

The fifth edition of the Diagnostic and Statistical Manual of Mental Disorders, a standardized classification of mental disorders used by mental health professionals in the U.S.

Abandonment

The act of leaving someone or something behind with no intention of return, often leading to emotional, physical, or legal issues.

Acute Mania

A state of heightened mood, energy, and activity levels that is most commonly seen in bipolar disorder, often requiring immediate medical intervention.

Countertransference

The emotional reaction of a therapist toward a patient, influenced by the therapist's own psychological background.