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Q19: Over the past year, a firm decreased its current assets and increased its current liabilities. As a result, the firm's net working capital: A.
Q19: Over the past year, a firm decreased its current assets and increased its current liabilities. As a result, the firm's net working capital: A. had to increase. B. had to decrease. C. remained constant. D. could have either increased, decreased, or remained constant. E. was unaffected as the changes occurred in the firm's current accounts Q20: A firm's liquidity level decreases when: A. inventory is purchased with cash. B. inventory is sold on credit. C. inventory is sold for cash. D. an account receivable is collected. E. proceeds from a long-term loan are received. Q21: Financial leverage: A. increases as the net working capital increases. B. is equal to the market value of a firm divided by the firm's book value. C. is inversely related to the level of debt. D. is the ratio of a firm's revenues to its fixed expenses. E. increases the potential return to the stockholders
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