Which One of the Following Statements Is Correct

question 29

Multiple Choice

Which one of the following statements is correct?

• A)Shareholders' equity is the residual value of a firm.
• B)Net working capital must be a positive value.
• C)An increase in cash reduces the liquidity of a firm.
• D)Equipment is generally considered a highly liquid asset.
• E)Depreciation increases total assets.

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Definitions:

Trees

Perennial plants with an elongated stem, or trunk, supporting branches and leaves in most species.

Raincoat

A waterproof jacket designed to keep the body dry from rain.

Members

Individuals belonging to a group, organization, or a specific category of people.

Parallel Structure

The use of the same pattern of words or phrases across multiple sentences or points to ensure consistency and clarity.