Which of the Following Statements Is Correct

question 1

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 a net working capital is to buy more machines or another plant.
• D)None of the statements are correct.

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Definitions:

Energy Factor

A term that could relate to various contexts, but generally refers to a measure or element that significantly influences the energy efficiency or energy required for processes or systems.

Chemical Reactions

Processes that involve rearrangement of the molecules or atomic structure of substances, resulting in new products.

Body Temperature

The measurement of the warmth or coldness of the human body, typically maintained around 37°C (98.6°F) under normal conditions.

Tissues Moist

A description of tissues that contain or are covered in liquid, typically referring to the natural wetness in living tissues.