Skip to content

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

  • by

Looking for the answer to the question below related to Working Capital ?

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

 Options:

  1. The lower the value of net working capital the greater the ability of a firm to meet its current obligations.
  2. An increase in net working capital must also increase current assets.
  3. Net working capital increases when inventory is sold for cash at a profit.
  4. Firms with equal amounts of net working capital are also equally liquid.

The Correct Answer Is:

  • C) Net working capital increases when inventory is sold for cash at a profit.

Conclusion

I hope you got the answer to your question.

 

Leave a Reply

Your email address will not be published. Required fields are marked *