Which of the Following Statements Is Correct

question 73

Multiple Choice

Which of the following statements is correct?

• A) A decrease in NWC involves either a reduction in current assets, which generates cash, or an increase in current liabilities, thereby freeing up the shareholder's cash for other things.
• B) A decrease in NWC involves either an increase in current assets, which generates cash, or a decrease in current liabilities, thereby freeing up the shareholder's cash for other things.
• C) An example of an increase in net working capital is to buy more machines or another plant.
• D) None of these choices are correct.

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