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

8.Which one of the following statements concerning net working capital is correct?DA. Net working capital increases when inventory ispurchased with cash.B. Net working capital must be apositive value.C. Total assets must increase if net workingcapital increases.D. A decrease in the cash balance may or may not decreasenet working capital.E. Net working capital is the amount of cash a firm currently hasavailable for spending.

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

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10.Which one of the following accounts is the most liquid?C

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11.Which of the following is (are) included in the market value of a firm but are excluded from thefirm's book value?EI. value of management skillsII. value of a copyrightIII. value of the firm's reputationIV. value of employee's experience

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12.You recently purchased a grocery store. At the time of the purchase, the store's market valueequaled its book value. The purchase included the building, the fixtures, and the inventory.Which one of the following is most apt to cause the market value of this store to be lower thanthe book value?DA. a sudden and unexpected increasein inflationB. the replacement of old inventory items with moredesirable productsC. improvements to the surrounding area byother store ownersD. construction of a new restricted access highway located between the store and thesurrounding residential areasE. addition of a stop light at the main entrance to thestore's parking lot

13.Which one of the following is true according to Generally Accepted Accounting Principles?E

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14.Which one of these is most apt to be a fixed cost?C

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19.

Which one of the following statements concerning net working capital is correct?A. The lower the value of net working capital is, the greater is the ability of a firm to meet its current obligations.

B. An increase in net working capital must also increase current assets.C. Net working capital increases when inventory is sold for cash at a profit.D. Firms with equal amounts of net working capital are also equally liquid.E. Net working capital is a part of the operating cash flow.

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Which of the following statements is correct Net working capital is defined as?

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