A Small Company Has Current Assets of $112,000 and Current

question 91

Multiple Choice

A small company has current assets of $112,000 and current liabilities of $117,000. Which of the following statements about that company is most likely to be true?

• A) Since net working capital is negative, the company will not have enough funds to meet its obligations.
• B) Since net working capital is high, the company will likely have little difficulty meeting its obligations.
• C) Since net working capital is very high, the company will have ample money to invest after it meets its obligations.
• D) Since net working capital is nearly zero, the company is well run and will have little difficulty attracting investors.

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Definitions:

Measurable Information

Quantifiable data that can be collected, analyzed, and used to track performance or progress.

Objective Data

Information about the patient’s condition that is readily apparent or measurable.

Open-Ended Questions

Open-ended questions are designed to encourage a full, meaningful answer using the respondent's own knowledge and/or feelings.

Data Collection

The process of gathering and measuring information on variables of interest in a systematic fashion.