Which One of the Following Statements Concerning Net Working Capital

question 66

Multiple Choice

Which one of the following statements concerning net working capital is correct?

• A)Net working capital increases when inventory is purchased with cash.
• B)Net working capital must be a positive value.
• C)Total assets must increase if net working capital increases.
• D)A decrease in the cash balance may or may not decrease net working capital.
• E)Net working capital is the amount of cash a firm currently has available for spending.

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