What Happens to a Firm's Net Worth as It Uses

question 6

Multiple Choice

What happens to a firm's net worth as it uses cash to repay accounts payable?

• A) Net worth increases.
• B) Net worth decreases.
• C) Net worth remains constant.
• D) Net worth decreases temporarily, until cash is replenished.

---

Definitions:

Free Elections

Elections characterized by the absence of coercion, with eligible citizens having the right to vote freely for their chosen representatives.

Yalta Conference

A meeting held in February 1945 between the leaders of the United States, the United Kingdom, and the Soviet Union to discuss the postwar reorganization of Germany and Europe.

Franklin Roosevelt

The 32nd President of the United States, who led the country during the Great Depression and World War II.