A Decrease in Current Assets and an Increase in Current

question 58

Multiple Choice

A decrease in current assets and an increase in current liabilities will ________ net working capital, thereby ________ the risk of insolvency.

• A) increase; increasing
• B) decrease; increasing
• C) increase; reducing
• D) decrease; reducing

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Definitions:

Holder

An individual or entity that possesses or owns something, such as a holder of a financial instrument or legal title.

Liable on Instrument

The responsibility to pay or perform as specified in a negotiable instrument, such as a check or promissory note, upon its maturity.

Identifies the Person

pertains to any method or criteria used to recognize or confirm the identity of an individual, such as through documents, biometrics, or personal information.

Federal Reserve Board

This is the governing body of the Federal Reserve System, the central banking system of the United States, responsible for overseeing monetary policy.