Which of the Following Statements About Net Working Capital (NWC)is

question 14

Multiple Choice

Which of the following statements about net working capital (NWC) is correct?

• A) NWC is positive for all firms.
• B) As NWC decreases, potential liquidity increases.
• C) NWC excludes inventory, which is deemed illiquid.
• D) NWC is negative if current liabilities exceed current assets.

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