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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Please answer multi-choice question in photo.
![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.
O 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.
O D. Holding other things constant, a decrease in accounts receivable can increase a firm's cash flow from assets.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F66deab6a-cfc7-4e2d-a349-a8777e518a15%2F9bcb34c0-410f-47b7-9df3-49408d3ce851%2F1fmg55_processed.png&w=3840&q=75)
Transcribed Image Text: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.
O 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.
O D. Holding other things constant, a decrease in accounts receivable can increase a firm's cash flow from assets.
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