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Which one of the following statements concerning net working capital is correct?

a) A decrease in accounts payable increases net working capital, all else constant.

b) Net working capital is equal to long-term assets minus long-term liabilities.

c) The lower the net working capital the greater the ability of a firm to meet its current obligations.

d) The change in net working capital is equal to current assets minus current liabilities.

e) Net working capital is a part of the operating cash flow.

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Accounting Basics, Accounting

Category:- Accounting Basics
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