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Relative to Cash Flows Affecting Net Working Capital, All of the Following

Question 196

Multiple Choice

Relative to cash flows affecting net working capital, all of the following are true EXCEPT


A) because most firms are unable to match cash inflows to outflows with certainty, current assets that more than cover outflows for current liabilities are necessary.
B) cash outlays for current liabilities are relatively predictable.
C) the more predictable the cash inflows, the less net working capital a firm needs.
D) cash inflows are generally more predictable than cash outlays.

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