Which of the following statements is correct?
A) A decrease in NWC involves either a reduction in current assets, which generates cash, or an increase in current liabilities, thereby freeing up the shareholder's cash for other things.
B) A decrease in NWC involves either an increase in current assets, which generates cash, or a decrease in current liabilities, thereby freeing up the shareholder's cash for other things.
C) An example of an increase in net working capital is to buy more machines or another plant.
D) None of these choices are correct.
Correct Answer:
Verified
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