A (n) ________ in current assets ________ net working capital, thereby ________ the risk of technical insolvency.
A) decrease; increases; increasing
B) decrease; decreases; reducing
C) increase; decreases; increasing
D) increase; increases; reducing

Question

Quizplus · Accepted Answer

An increase in current assets increases net working capital, which reduces the risk of technical insolvency by improving the company's ability to cover short-term liabilities with short-term assets.

A (N) ________ in Current Assets ________ Net Working Capital

A (N) in Current Assets Net Working Capital