Which One of the Following Statements Concerning Net Working Capital

Multiple Choice

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

A) The greater the net working capital, the greater the ability of a firm to meet its short-term obligations.
B) The change in net working capital is equal to current assets minus current liabilities.
C) Depreciation must be added back to current assets when computing the change in net working capital.
D) Net working capital is equal to long-term assets minus long-term liabilities.
E) Net working capital is a part of the operating cash flow.