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Changes in Net Working Capital are not only reflected in the firm's Balance Sheet but also in its Cash Flow Statement. Which statement about the effect of Changes in Net Working Capital on the firm's Cash & Cash Equivalents is most likely true? Question 1 options: A.) An increase in Taxes Payable leads to an increase Cash & Cash Equivalents. B.) A decrease in Accounts Receivable leads to a reduction in Cash & Cash Equivalents. C.) A decrease in Other Current Assets leads to a reduction in Cash & Cash Equivalents. D.)An increase in Inventory leads to an increase in Cash & Cash Equivalents.

Changes in Net Working Capital are not only reflected in the firm's Balance Sheet but also in its Cash Flow Statement. Which statement about the effect of Changes in Net Working Capital on the firm's Cash & Cash Equivalents is most likely true? Question 1 options: A.) An increase in Taxes Payable leads to an increase Cash & Cash Equivalents. B.) A decrease in Accounts Receivable leads to a reduction in Cash & Cash Equivalents. C.) A decrease in Other Current Assets leads to a reduction in Cash & Cash Equivalents. D.)An increase in Inventory leads to an increase in Cash & Cash Equivalents.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Changes in Net Working Capital are not only reflected in the firm's Balance Sheet but also in its Cash Flow Statement. Which statement about the effect of Changes in Net Working Capital on the firm's Cash & Cash Equivalents is most likely true? Question 1 options: A.) An increase in Taxes Payable leads to an increase Cash & Cash Equivalents. B.) A decrease in Accounts Receivable leads to a reduction in Cash & Cash Equivalents. C.) A decrease in Other Current Assets leads to a reduction in Cash & Cash Equivalents. D.)An increase in Inventory leads to an increase in Cash & Cash Equivalents.
Transcribed Image Text:Changes in Net Working Capital are not only reflected in the firm's Balance Sheet but also in its Cash Flow Statement. Which statement about the effect of Changes in Net Working Capital on the firm's Cash & Cash Equivalents is most likely true? Question 1 options: A.) An increase in Taxes Payable leads to an increase Cash & Cash Equivalents. B.) A decrease in Accounts Receivable leads to a reduction in Cash & Cash Equivalents. C.) A decrease in Other Current Assets leads to a reduction in Cash & Cash Equivalents. D.)An increase in Inventory leads to an increase in Cash & Cash Equivalents.
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