A Firm Starts Its Year with Positive Net Working Capital

question 82

Multiple Choice

A firm starts its year with 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 must 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)accounts payable 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:

Random Variable X

A specific random variable denoted by "X", representing a numerical outcome of a random process.

Managerial Positions

Roles within an organization that are responsible for overseeing, directing, and planning the work of others and making strategic decisions.

Expected Value

The average outcome of a random variable, calculated as a weighted average of all possible values.

Number Of Clients

The total count of individuals or entities that receive services or goods from a business or organization.