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

The predictability of cash inflows helps in better planning and management of working capital, as it allows firms to optimize their current assets and liabilities more effectively, thus easing the process of working capital management.

Which of the Following Is True of the Impact of Cash