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.

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Definitions:

Conflict of Interest

A conflict of interest occurs when an individual's personal interests potentially interfere with their professional responsibilities, leading to biased decisions.

Employee

An employee is a person who is hired to provide services to a company on a regular basis in exchange for compensation.

Personal Gain

Benefiting or profiting oneself, often at the expense of others or through unethical means.