Which of the Following Statements Is Correct

question 25

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 these statements is correct.

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Definitions:

Heart Disease

A range of conditions affecting the heart, including coronary artery disease, heart attacks, and congenital heart defects.

Transitional Words

Words or phrases used to link sentences and paragraphs together cohesively.

Nuclear Explosion

An immensely powerful explosion resulting from the sudden release of energy upon the splitting (fission) or merging (fusion) of atomic nuclei, used both as weapons and in certain scientific applications.

Roaches

Common name for certain insects of the order Blattodea, known for their resilience and tendency to inhabit human dwellings.