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The Cash Flow Effect from a Change in Net Working

question 93

True/False

The cash flow effect from a change in Net Working Capital is always equal in size and opposite in sign to the changes in Net Working Capital.


Definitions:

Ex-Ship

A shipping term indicating the seller's responsibility ends when the goods are made available to the buyer on board the ship at the destination port.

Risk of Loss

The potential for losing ownership or value in an asset, often discussed in the context of goods during shipment or transactions.

Place of Shipment

The location agreed upon by the seller and buyer from where the seller will ship the goods.

Uniform Commercial Code

A comprehensive set of laws governing commercial transactions in the United States, intended to harmonize the law among the states.

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