Net Working Capital

question 22

Multiple Choice

Net working capital:

• A)represents the company's ability to pay its long-term debts.
• B)is computed by subtracting total current liabilities from total current assets.
• C)should be a negative number to ensure the profitability of the company.
• D)should be the same for all companies.

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Definitions:

Sensory Memory

The shortest-term element of memory, it's the ability to retain impressions of sensory information after the original stimuli have ended, acting almost as a buffer for stimuli through the senses.

Schemas

Cognitive structures or frameworks that help individuals organize and interpret information.

Short-term

Describing something of limited duration, often applied to memory systems that hold information temporarily.

George Miller

A psychologist best known for his work in cognitive psychology and for proposing the theory that the short-term memory could hold 7±2 items.