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.

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Definitions:

Motorcycles

Two-wheeled vehicles powered by an engine, often used for both everyday transport and recreational activities.

SUVs

Sport Utility Vehicles; a category of motor vehicles that combine elements of road-going passenger cars with features from off-road vehicles, such as raised ground clearance and four-wheel drive.

Comparative Advantage

The ability of a country, individual, company, or region to produce a good or service at a lower opportunity cost than competitors.

Petroleum

A naturally occurring, flammable liquid consisting of a complex mixture of hydrocarbons and other organic compounds, used primarily as fuel and in the production of various chemicals.