An Increase in Current Assets Increases Net Working Capital, Thereby

question 329

True/False

An increase in current assets increases net working capital, thereby reducing the risk of technical insolvency.

---

Definitions:

Price Elasticity

A measure of the responsiveness of quantity demanded or supplied to a change in price.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that suppliers are willing and able to sell.

Budget Proportion

Budget proportion refers to the allocation or division of an individual's or entity's budget among various expenses or categories.

Price Elasticity

An indicator of how sensitive the demand or supply for a product or service is to variations in its cost.