Relative to Cash Flows Affecting Net Working Capital, All of the Following

question 70

Multiple Choice

Relative to cash flows affecting net working capital, all of the following are true EXCEPT

• A) cash inflows are generally more predictable than cash outlays.
• B) cash outlays for current liabilities are relatively predictable.
• C) the more predictable the cash inflows, the less net working capital a firm needs.
• D) because most firms are unable to match cash inflows to outflows with certainty, current assets that more than cover outflows for current liabilities are necessary.

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Definitions:

Government Intervention

Actions taken by a government to influence or directly involve itself in the economy or specific sectors to achieve certain objectives.

Bargaining Process

The negotiation between employers and a group of employees aimed at reaching agreements to regulate working salaries, working conditions, and other aspects of workers' compensation and rights.

Provincial And National Levels

Pertains to the administrative divisions within a country, covering both the regions governed at an intermediate level (provincial) and the entire country (national).

International Brotherhood Of Teamsters

A large trade union in North America representing a diverse membership in various industries, known for its advocacy on workers’ rights and labor issues.