A new project is expected to have the following effects on the ﬁnancial statements of a ﬁrm. The
effect of a decrease in accounts receivable should be included in the net working capital
requirements for the project.

Question

Quizplus · Accepted Answer

A decrease in accounts receivable affects net working capital as it represents a change in current assets, which is a component of net working capital.

A New Project Is Expected to Have the Following Effects