A Firm Starts Its Year with a Positive Net Working

question 75

Multiple Choice

A firm starts its year with a positive net working capital.During the year,the firm acquires more short-term debt than it does short-term assets.This means that:

• A)the ending net working capital will be negative.
• B)both accounts receivable and inventory decreased during the year.
• C)the beginning current assets were less than the beginning current liabilities.
• D)trade payables increased and inventory decreased during the year.
• E)the ending net working capital can be positive,negative,or equal to zero.

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Definitions:

Retina

A layer of tissue located at the back of the eye, containing cells that are sensitive to light and trigger nerve impulses that pass via the optic nerve to the brain.

Rhodopsin

A light-sensitive pigment found in the rod cells of the retina, crucial for low-light vision.

Photoreceptor

A light-sensitive cell located on the retina that converts light energy into neural impulses.

Iris

the colored ring around the pupil of the eye, responsible for controlling the size of the pupil and thus the amount of light that enters the eye.