If a Firm Is Growing and Expanding Its Accounts Receivable

question 76

Multiple Choice

If a firm is growing and expanding its accounts receivable and inventories faster than its current operating liabilities its cash flow from operation will normally be:

• A) greater than net income
• B) less than net income
• C) greater than the change in working capital from operations
• D) greater than the change in cash.

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Definitions:

Premiums

Premiums are the amounts paid for insurance policies, providing coverage against various risks and ensuring financial protection.

Life Policy

an insurance contract that pays a specified sum to beneficiaries upon the death of the insured individual.

Per Thousand

A term used to denote rates or quantities calculated per thousand units.

Annual Payments

Regular payments made once a year, often as part of a financial agreement or obligation.