If the initial current ratio for a ﬁrm is greater than one, then using cash to purchase marketable
securities will decrease net working capital.

Name: If the initial current ratio for a ﬁrm is greater than one, then using cash to purchase marketable securities will decrease net working capital.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Purchasing marketable securities with cash does not change net working capital, as both are current assets and the overall current assets remain the same.

If the Initial Current Ratio for a ﬁRm Is Greater