A New Project Would Require an Immediate Increase in Raw

question 31

Multiple Choice

A new project would require an immediate increase in raw materials in the amount of $12,000. The firm expects that accounts payable will automatically increase $8,500. How much must the firm expect its investment in net working capital to change if they accept this project?

• A) +$20,000
• B) +$3,500
• C) −$20,500
• D) −$3,500

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Definitions:

Unconscious

The part of the mind that contains thoughts, memories, and desires not within the realm of current awareness but that influence behaviors and emotions.

Negative Thinking

A pattern of focusing on distressing and unfavorable outcomes or interpreting situations pessimistically.

Classically Conditioned

The process by which an individual learns to associate an initially neutral stimulus with a biologically potent stimulus, producing a reflexive response.

Client-Centered Therapy

An insight therapy that emphasizes providing a supportive emotional climate for clients, who play a major role in determining the pace and direction of their therapy.