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Over the Past Year,a Firm Decreased Its Current Assets and Increased

Question 6

Multiple Choice

Over the past year,a firm decreased its current assets and increased its current liabilities.As a result,the firm's net working capital:


A) had to increase.
B) had to decrease.
C) could have remained constant if the amount of the decrease in current assets equaled the amount of the increase in current liabilities.
D) could have either increased, decreased, or remained constant.
E) was unaffected as the changes occurred in the firm's current accounts.

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