Which of the following statement on the firm's net working capital is incorrect? A. Holding other things constant, an increase in inventory can decrease a firm's cash flow from assets. B. Holding other things constant, an increase in cash can increase a firm's cash flow from assets. C. Holding other things constant, a decrease in accounts payable can decrease a firm's cash flow from assets. D. Holding other things constant, a decrease in accounts receivable can increase a firm's cash flow from assets.

Which of the following statement on the firm's net working capital is incorrect? A. Holding other things constant, an increase in inventory can decrease a firm's cash flow from assets. B. Holding other things constant, an increase in cash can increase a firm's cash flow from assets. C. Holding other things constant, a decrease in accounts payable can decrease a firm's cash flow from assets. D. Holding other things constant, a decrease in accounts receivable can increase a firm's cash flow from assets.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 5MCQ

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Similar questions

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