Which of the Following Is True About Net Working Capital

question 202

Multiple Choice

Which of the following is true about net working capital?

• A) Projects in which a firm expands its operations and sales will generally not lead to changes in net working capital.
• B) Changes in net working capital account for differences between accounting sales and costs and actual cash receipts and payments.
• C) Net working capital is typically an expense at the beginning of a project and an equal revenue source at the end of a project; thus, there is no impact on project NPV.
• D) Dollar changes in the cash account are generally equal to changes in net working capital.
• E) Net working capital is not considered an investment of the firm.

---

Definitions:

Vision-Impaired

A term describing individuals who have limited or no vision, encompassing a range of visual impairments from partial vision loss to total blindness.

Gazing Patterns

The way in which individuals look at others or objects in their environment, often studied to understand attention, attraction, and social cues.

Non-Verbal Communication

The process of conveying information or expressing feelings without the use of spoken words, through gestures, facial expressions, and body language.

Gaze

Looking at someone’s eyes.