The change in net working capital when evaluating a capital budgeting decision is ________
A) the change in fixed liabilities minus the change in fixed assets
B) the increase in current assets
C) the increase in current liabilities
D) the change in current assets minus the change in current liabilities
D
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In comparing the current ratios of two companies, why is it invalid to assume that the company with the higher current ratio is the better company?
a. The two companies may be different sizes. b. A high current ratio may indicate inadequate inventory on hand. c. The two companies may define working capital in different terms. d. A high current ratio may indicate inefficient use of various assets and liabilities.
In practice, the focus of the Endangered Species Act is on:
a. the purchase of habitat by the Fish and Wildlife Service to expand breeding ranged for endangered species b. the elimination of hazards, such as pesticides and herbicides, that threaten endangered species c. breeding programs, often in captivity, to preserve the genetic stock of endangered species d. all of the other choices are part of the active programs initiated by Congress to protect species e. none of the other choices
Which of the following is NOT a part of financing activities?
A) Paying dividends B) Issuing stock C) Paying off loans D) Buying land
Introduction of a new process to ship packages for a firm is an example of a project objective
a. True b. False Indicate whether the statement is true or false