A Decrease in Net Working Capital (NWC) Is Treated as a

question 22

Multiple Choice

A decrease in net working capital (NWC) is treated as a

• A) cash inflow.
• B) cash outflow.
• C) sunk cost.
• D) historical cost.

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Definitions:

Imbalance

A state of lack of equilibrium or proportion, in physical contexts, emotional states, or relationships.

Self-Handicapping

A strategy where individuals create obstacles to their own success to protect self-esteem in case of failure.

Elaboration Likelihood Model

A theory in social psychology that explains different ways of processing stimuli, why they are used, and their outcomes on attitude change.

Dissonance Theory

A theory that suggests people are motivated to reduce the discomfort (dissonance) caused by inconsistencies between their beliefs and their actions.