If a Firm's Net Income Is Positive and Its Noncash

question 8

Multiple Choice

If a firm's net income is positive and its noncash expenses are positive,which of the following could account for a negative amount of cash provided by operations?

• A) Current assets decrease more than current liabilities decrease.
• B) Current assets increase more than current liabilities increase.
• C) Current assets decrease more than current liabilities increase.
• D) A large addition is made to plant and equipment.

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Definitions:

Thermal Overload Units

Protective devices in electrical circuits that interrupt power in the event of an overload to prevent overheating, often integrated into motors and circuit breakers.

Full Load Amperes

The current drawn by an electric motor when operating at its designed capacity.

Overload Heaters

Protective devices installed in motor starters to prevent motors from overheating by mimicking the thermal characteristics of the motor under overload conditions.

Inverse Time-Delay

A characteristic of certain protective devices where the time taken to interrupt the current decreases as the magnitude of the fault current increases.