Which One of the Following Relates to a Negative Change

question 109

Multiple Choice

Which one of the following relates to a negative change in net working capital?

• A)Increase in the inventory level
• B)Sale of net fixed assets
• C)Purchase of net fixed assets
• D)Increase in current assets and decrease in current liabilities for the period
• E)Increase in current liabilities with no change in current assets for the period

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Definitions:

Simple Regression

A statistical method for quantifying the relationship between a single independent variable and a single dependent variable.

Intercept

In statistics and mathematics, the point at which a line crosses the y-axis in a graph, representing the value of the dependent variable when the independent variable is zero.

Error Term

The difference between observed values and estimated values in a statistical model.

Multicollinearity

A statistical phenomenon where two or more predictor variables in a multiple regression model are highly correlated, potentially distorting estimates.