Which of the Following Statements Is Correct

Which of the following statements is correct?

A) A decrease in NWC involves either a reduction in current assets, which generates cash, or an increase in current liabilities, thereby freeing up the shareholder's cash for other things.
B) A decrease in NWC involves either an increase in current assets, which generates cash, or a decrease in current liabilities, thereby freeing up the shareholder's cash for other things.
C) An example of an increase in a net working capital is to buy more machines or another plant.
D) None of the statements are correct.

Correct Answer:

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