Which of the Following Actions Will Cause a Firm's Net

question 115

Multiple Choice

Which of the following actions will cause a firm's net working capital to increase?

• A)The firm uses more trade credit.
• B)The firm increases its inventory in anticipation of seasonal sales.
• C)The firm pays off a short-term bank loan with cash.
• D)All of these will cause a firm's net working capital to increase.

Understand the impact of lifestyle choices on physical health.

Comprehend the development and complications of visual and auditory health.

Recognize the importance of exercise in physical development.

Identify the relationship between mental health and physical health in children.

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Definitions:

Time Value

The principle that money in hand today has a greater value than an identical sum received in the future because of its ability to earn more over time.

Investment

The process of distributing funds with the aim of earning an income or a profit.

Future Value

The value of an investment at a specified date in the future, factoring in variables like capital growth and interest rates.

Compounding

The process whereby interest is credited to an existing principal amount as well as to interest already paid, leading to exponential growth over time.