A Firm Has the Following Account Balances

question 42

Multiple Choice

A firm has the following account balances. Which one of the following statements is correct concerning those balances?

• A) Accounts receivable is a $900 source of cash.
• B) Common stock is a $1,500 source of cash.
• C) Net working capital, excluding cash, is a $1,500 use of cash.
• D) Long-term debt is a $5,800 source of cash.
• E) Total debt is a $6,100 use of cash.

---

Definitions:

French unions

Labor unions specific to France, with a tradition of vigorous and often public collective bargaining and industrial action.

Co-determination

A practice where employees have the right to participate in management decisions in a company, often implemented through representation on corporate boards.

National stability

The condition of a nation characterized by economic steadiness, secured governance, and societal peace and cohesion.

Lifetime Employment

A policy or practice where employees are offered stable, long-term employment until retirement, typically found in some cultures or companies.