Increased Needs for Net Working Capital Are

question 92

Multiple Choice

Increased needs for net working capital are:

• A) recognized in pro forma balance sheets.
• B) totally absorbed by retained earnings.
• C) typically financed with short-term debt.
• D) ignored due to their great variability.

---

Definitions:

Disconfirmatory Information

Information or evidence that contradicts or refutes one's beliefs or assumptions.

Event Schemas

Cognitive structures that help individuals organize and interpret information about sequences of actions that occur in specific situations.

First Instinct Fallacy

The mistaken belief that an individual's first choice or gut reaction is always the correct or best one.

Statistical Regression

A statistical technique that determines the relationship between a dependent variable and one or more independent variables to predict the outcome of the dependent variable.