Which of the following is TRUE of the impact of cash flows on net working capital?
A)The higher the cash inflows lower is the net working capital.
B)The lower the cash outflows lower is the net working capital.
C)The more predictable the cash inflows of a firm,the more current assets a firm needs.
D)The more predictable the cash inflows of a firm,the easier is the working capital management.

Question

Quizplus · Accepted Answer

Predictable cash inflows make it easier to manage working capital as firms can better plan for their short-term financial needs and obligations.

Which of the Following Is TRUE of the Impact of Cash