Question
A decrease in ________ would increase net working capital. A) accounts payable B) accounts receivable C) cash D) equipment 151) In general, the greater a
A decrease in ________ would increase net working capital.
A) accounts payable
B) accounts receivable
C) cash
D) equipment
151) In general, the greater a firm's reliance upon short-term debt or current liabilities, the lower
the:
A) liquidity.
B) flexibility.
C) certainty of interest costs.
D) both A and C.
152) Within the context of working capital management:
A) as the firm increases its investment in working capital, there is a corresponding increase in its
profits.
B) current liabilities provide a flexible means of financing the firm's fluctuating needs for assets.
C) the use of current liabilities or short-term debt as opposed to long-term debt subjects the firm
to less risk of illiquidity.
D) all of the above.
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