Which of the Following Is True of the Impact of Cash

question 59

Multiple Choice

Which of the following is true of the impact of cash flows on net working capital?

• A) The higher the cash inflows lower is the net working capital.
• B) The lower the cash outflows lower is the net working capital.
• C) The more predictable the cash inflows of a firm, the more current assets a firm needs.
• D) The more predictable the cash inflows of a firm, the easier is the working capital management.

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Definitions:

Contact Cultures

Societies or communities that prefer close physical proximity and touch as part of social interactions.

Personal Space

The physical area surrounding an individual that they regard as psychologically theirs, comfort levels with proximity vary across cultures and individuals.

Noncontact Cultures

Societies or communities that maintain social distance and prefer minimal physical contact in social interactions.

Ambience

The character and atmosphere of a place, often created by its aesthetic qualities, lighting, and environment.