Which of the following would normally occur if a firm increases its investment in current assets?
A) The firm's liquidity would be improved.
B) The firm's net working capital would decline.
C) The firm's liquidity would be worsened.
D) The firm's profit margin would improve.

Question

Quizplus · Accepted Answer

Increasing a firm's investment in current assets, such as cash, inventory, and accounts receivable, generally improves the firm's liquidity by making more assets readily available to meet short-term obligations.

Which of the Following Would Normally Occur If a Firm